I would say it's trans adjacent.

The kid is, was, and always has been a boy, in every sense of the word. Both as their "biological" gender and their actual gender.

Some doctor fucked up and put "female" on the birth certificate. It was noted, corrected and now the birth certificate has been amended.

The USA part of all of this is that bureaucratic bullshit is prohibiting the school from recognising the fact that a mistake happened and allow the poor kid to participate like everyone else. He's stuck in limbo because some dickhead on a power trip who has a hard on for making life difficult for people who are different from them, made a short sighted decision to put such a policy in place, without comprehending that doctors are people who can make mistakes, exactly like the one in the OP. It's the bullshit bureaucracy that's very USA. It's the inflexible rules that are very USA.

The rules were made to punish trans people for daring to try to like who they are, instead of being miserable in the cast they were born into, and it bit them in the ass, inadvertently punishing one of "their own".

So yeah, trans rights, or lack thereof is the reason behind the problem, but the problem is affecting someone who is distinctly not trans.

Even a rule rooted in transphobia could be well written. This one is not.