I’ll put this differently so maybe my position comes through more clearly.
There are two biological sexes, and not everyone fits neatly into either. If you’re trying to make more categories, each will have a ton of exceptions and you will never have enough categories to cover the case of every human who ever lived or will live.
Analogy: there’s an island where there are 2 cities. There’s also a hermit living in a trailer up the hills, an airline pilot who travels much for work and occasional stays in one or the other city, and a cowboy who is on the run from the authorities so he never enters a city and camps in the wilderness instead. On this island, there are 2 cities and 3 people who don’t live in either. It would be absurd to say that there are 5 cities on this island.