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As an Aussie who grew up when that was our National Anthem, I have never heard the middle verse. Before looking it up I was able to recall the third stanza, which I was taught at school. The two stanza version, first and third, would occasionally be sung at school assemblies and the like, on formal occasions. I would imagine the same might apply in the U.K.
I think you only need read the second stanza and use some common sense to understand why it has become inappropriate these days.
Here we now have our own National Anthem which has two verses, only the first of which is generally sung. God Save the Queen remains the Royal Anthem, heard occasionally, and usually only the first stanza.