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I've always wondered what exactly it means - in context it's code that's been deliberatly broken or functionality removed from a program in order to sell a higher priced alternative or also used as a general description of code that no longer works (after patching or updating)
I think it's something like "Not Even Really Functioning Effectivly Disabled/Destroyed" or something similar
M$ W0rd 9's HTML is NERFED (in order to sell M$ Fr0ntp@ge)
NERFED by Joe June 25, 2004
Related Words
The term 'Nerfed' is a reference coined from the popular toy brand by Hasbro®, known for making play-weapons and sports equipment with an emphasis on utilizing a foam construction for the fun and safe use of their products. As such, the term is used to refer to something in a story or video game whose capabilities are altered to be less effective, hence comparing a previously useful tool to a Nerf® toy. A character in a story may be 'nerfed' to reconcile overpowered abilities with the continuity of the plot. A strategy or weapon in a video game may be 'nerfed' by the developers to ease the frustration of other players, encourage alternative strategies, or increase the level of difficulty.
His character had a really good strategy in the pilot, but then it was like he was nerfed for the rest of the season.
Nerfed by Grimslimjim August 1, 2023
to get fucked with one thing but still be good at others like being handsome but British.
like Robert Pattinson or any handsome man being turned British in one way or another its being nerfed. p.s fuck you if you don't agree that people that are British no matter the looks get fucking nerfed with the accent.

dick nerfed 

The nerfing of a mans penis, in the context of being circumcised.

Another term for a circumcised penis.
My mom dick nerfed me when I was born.

When I got my foreskin cut off, I lost of a lot of length. I got dick nerfed dude.
dick nerfed by e440 May 17, 2019

Needs to be nerfed 

Used when something/someone is awesome in any way.
Originates from the gaming world (nerfing e.g. a weapon = making it weaker or less overpowered).
Strawberries need a nerf so badly!
Why is he so funny? He needs to be nerfed.

pobody's nerfect

A conciliatory way of saying, "nobody's perfect" that illustrates the concept. Originated with Cracked and Mad Magazine in the 70s.
I'm sorry, that was dumb.

That's OK, pobody's nerfect.
pobody's nerfect by Downstrike December 23, 2004