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It really does seem like every organization has that character, the walking talking problem who is somehow necessary to retain. In some cases they actually do have some skill that's needed, but sometimes it seems like they're kept around just because it would be too much hassle to replace them. All anyone can do is try to navigate around them and avoid whatever drama they have cooking.
No one is irreplaceable. I’ve worked with excellent, genius level people who left and there was barely a blip. They only seem irreplaceable until they are replaced.
Usually because everyone in management refuses to take accountability for doing what no one wants the mess of dealing with.
Most likely, a manager and or owner rely on them too much and wouldn't begin to know how to post a job ad or write a jd among other things to replace them, He/She knows this person is abrasive and just looks the other way.