It's still a fake non-issue.
Even if minute in terms of the number of athletes affected, each person that cannot participate is being denied equal participation in society. More broadly, the same people pushing to ban transgender sports participation are seeking to remove transgender recognition from society as a whole.
Trans people deserve human rights, respect, dignity, and privacy, and sports organizations and schools should figure out their own rules that work for their own communities.
Letting local communities selectively deny transgender people equal rights is not acceptable. Civil rights are not something that should be optional. No school or sporting organization in any state should be discriminating against transgender individuals in any capacity with respect to their gender identity.