I took my three grand-daughters. They spent most of their time (and my money) getting up for popcorn and candy. To them, believe me, it was harmless. For me, I found it boring. And I never saw the transgender stuff. Guess I wasn't paying attention.
Hey, I can't speak for Shrek 2, altho if it's like Shrek 1 I can believe it. I'm talking generally, not this specific movie. It's out there. Believe me. I just hope it DOES fly over their heads. Altho the rude, crass behavior like burping and farting (not to mention all the talk-back flippancy to parents and elders) in too many shows/movies won't - it's obvious.
Read "Hollywood vs America", ~1992 - Michael Medved, *former* lib (at the time he *wrote* it), current conservative.