The issue is men trying to compete in women's competitions.
There may be an argument for not having separate tournaments for women at all, but while there is such a division, it's essential to filter out men for this purpose - including those who pretend to be women.
Or maybe they're just trying to do the right thing for women. Perhaps the decision-makers in FIDE have listened to feminist critique of this recent policy movement that advocates for men who call themselves women to be allowed in what would otherwise be women-only spaces.
The goal is to have women-only spaces, in this case a competitive space. It's essential to filter out men for this purpose, including those who pretend to be women.
Making an exception for the latter if they make some attempt to perform femininity, even if it's a somewhat convincing act, really just undermines the entire point.
There may be an argument for not having separate tournaments for women at all, but while there is such a division, it's essential to filter out men for this purpose - including those who pretend to be women.