Yes. That's one of the problems with the "I am lord and master of this domain, and all will obey me and my nutty definitions of words like 'transphobia' into some wild alternate reality" model. Human interaction doesn't need to work that way, even if it gets more comfortable when you're aligned with the lord and master to do it that way.
Personally I think that two things are going on here: One, the whole Lemmy model where people are divided into the lords who must be obeyed no matter how arbitrary their rules, and the people who must obey, breeds and normalizes some toxic models of interaction. And, two, basically 100% of Lemmy is already queer-friendly and trans-friendly, and so an instance that wants to "stand out" as a particularly queer-friendly instance has to keep ratcheting up the level of overt queer-friendliness of the rules of their instance until they're again in a position of giving other people a hard time for not being queer-friendly enough. And so the inevitable conclusion is that the rules have to include things like "dragon is a gender!" and "questioning certain things I say is transphobia even when it's not!"
Like I say, in my opinion, the whole thing is fuckin' ridiculous. I have heard the same from queer people who have been drummed out of blahaj for exactly the same reasons (basically, having and stating opinions that aren't the official lord-and-master opinion.) In my opinion that makes for a bad model for an instance. It's got nothing to do with the identity of the people who are making the rules that way for the instance, it has to do with the nature of the interactions that it causes.