It was an issue 9 years ago. A friend of mine who teaches physics in NISD had a transition female----->male hormone therapy taking hold. One fellow student brought up to the teacher "she" was in the boys bathroom. They had a policy meeting because the kid filing the complaint went home to parents. It was on its way in public schools before "we" heard about it.
As is often the case, the technology (of the change in this case) becomes much better with time, and you got an issue.