My brother was adopted and my grandmother was similarly biased against him, asking my mom if we got any money from the state for taking care of him. Like, no, he’s her son! There wasn’t even the excuse of racism–my brother is blond-haired and blue-eyed. He just wasn’t her blood.

Eventually she started liking him as dementia kicked in and she forget his origin. Still messed him up.

I’m glad your nephew didn’t have to deal with her for all that long, though it sounds like it was already long enough.