There are two parts in the Catholic criticism against Masonic oaths. First that Masons are taking God's name in vain when they give their oaths. Second, that the oaths contain promises of self-mutilation which are contrary to the Christian belief that the human body is the abode of the Holy Spirit.
The Catholic church acknowledges the value of oaths for important things such as marriage vows. But it considers Masonic oaths "to a social club" as trivial and therefore as a misuse of God's name. One may indeed think that the Masonic oaths are a bit overblown in the present situation. They are extremely solemn and rigorous. But they remain in this old-fashioned form because they are a reminder of times when betraying a fellow Mason could indeed have been a matter of life and death.
Masons do not swear by God. The oath in the classic English "Emulation Ritual" is taken "in the presence of God". Those words appear there only to remind all those present that God sees and hears all things, and may punish those who make false promises. Surely it cannot be sacriligious to make such a reminder.
As to self-mutilation, this can hardly be anything but a misunderstanding of the oath. In some older oaths, the candidate pronounces that if he should betray his solemn promises, he considers himself "worthy of no less punishment than to..." followed by a list of horrendous punishments. It has never been said that the Freemasons would inflict such punishments on an oath-breaker. It has never been said that the oath-breaker is promising to inflict any punishments on himself.
The purpose of that part of the oath is to pronounce a harsh judgement on the crime of oath-breaking. Nothing else.