The spit will hit the fan when transgender “girls” start applying for (and start getting) women’s athletic scholarships worth big bucks (free tuitions) at universities.
At that point, the Title 9 crowd will start seeing financial aid for girls side-tracked to financial aid for “girls”, but will be unable to abandon either gender equity or LGBTQXYZ ideology.
My prediction - eventually there’ll be scholarships for men’s athletics, scholarship’s for women’s athletics, and scholarships for transgender athletics, with male athlete’s “identifying” as women competing separately among their own. There will of course be no need of scholarships for women “identifying” as men, because other than rare exceptions, women “identifying” as men will generally not be competitive with actual men.
Why stop at athletics? There are scholarships for girls who who want to study engineering and other “male dominated” professions. One way to fix the gender disparity is to simply have men declare themselves to be women.