You can indeed find this usage in colloquial French, especially among young people. It is a fairly recent usage, so I bet Larousse has not taken it in yet.
Depending on the context, the meaning can be "that’s tough" (I guess that is the meaning in your example) or "that’s difficult".
"C’est chaud" can be used in a couple similar ways in slang. For a more detailed explanation, see Johan Tekfak from Français Authentique’s explanation.
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If a situation is difficult, you could say "c’est chaud." Example: "Y’a tellement de gens dans ce bus, c’est chaud pour trouver une place."
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Describing a tense, dangerous or chaotic situation. Example: "Les mecs sont en train de se taper dessus à coup de barre de fer, c’est chaud!"
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If you’re shocked and want to express how upsetting something is, you could also use it. Example: "Martine a eu un accident de voiture hier? Ah ouais c’est chaud quand même!"
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