It's all very very very badly written but that really isn't the point. And there's a lot of things that go into the essantialism of sexes if you don't want to discriminate against intersex people, except:
it seems they might want to discriminate against intersex children as well.
Here's the single paper that that is. Has nothing to do with trans people. (Archive)
Of course the HHS is being made to actually write it in way more biologically fluid but the results would be the same even if they did end up making everyone legally female.
View attachment 6891528
Technically yes, it's like blurring middle fingers or similar things on the news.