as i said, i dont know why make simple things looks hard
by the way, i didnt understand why you use /set -e
and then use /unset %1* on the sockread event, since the /set -e will unset when mIRC close, whats the meaning of use -e so?

a doubt...
you have used 2 different variables, i didnt test the code yet
but why didnt you use just one set and then tokenize the %1-?

 set %1- $+($strip($1-),^,msg # $nick No Swearing Please!)

and then

tokenize 94 %1-

the code will kick OPs too, in this case, it will probably cause a kick revenge war on the room, if the bot kicks OPs

my advice is put an on load event, that will catch all the badwords, and then saves the file, instead open a socket everytime someone talks