Two-Spirit is a term invented in the 90's by gay Indigenous people to broadly loop together all the different gender non-conforming traditions of their cultures under a new label. It's not analogous to saying "gay" or "lesbian", but trying to build solidarity among native LGBT people to advocate for themselves. Anthropologically, you used to see the somewhat offensive term "berdache" (which basically means "rent boy", and is also used in anthropology to refer to the passive partner in male homosexual unions, which depending on the culture would be treated very differently than the active one) used to describe this third gender category that existed in a lot of different cultures under different names, and part of the Two-Spirit push was to get away from that descriptor. But really, mostly the names for them just translated to "men who act like women" or "women who act like men", and there wasn't a big distinction drawn between homosexuality and what we would call gender expression now. In some cultures they fulfilled some special spiritual roles, thought by no means all cultures in the Americas had this, and like a lot of other cultures around the world, it was a sort of a grey space these people existed in. It didn't make them magical shamans automatically, the way hippies like Tom think it does. That's actually part of the original gay hippie movement in the pacific northwest in the 70s, a big thing was adopting native regalia because it made being gay this special magical thing, if you totally misread the actual historiographic record and misinterpreted the oral histories.
Tom, because he is schizo, thinks that the two-spirit terms applies literally, and that he can claim to have a seperate male and female aspect. He then blames all his anger and negative emotions on his male half, because he thinks it absolves him. That shit is just pure schizo nonsense.
E: took too long writing and got beaten to it. but yeah, as
@RadioactiveMonkeyMan said, it's basically Tom willfully misinterpreting something from Native culture, and claiming that at some point he got granted this label (that not everyone uses or accepts) by the great Indigenous Hive Mind, that also sanctions him claiming to be an Israeli priestess as grounds for being native. There's like 10 layers of bullshit to take apart.