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I think the debate is about what a reasonable class is. I don’t think that an appendage, or identity for that matter, is a reasonable proxy for capability class. In my mind you really have to go one of two ways.
You either make everything class-less (think UFC 1) where all weights, sizes, abilities, genetics compete for a singular title
Or
You make science-based classes, based around whatever the best proxy for capabilities are (testosterone, chromosomes, height, weight, body fat percentage, some combination of the former, etc)
If you use nothing as a proxy, there would be a lot of people unable to compete but it would at least be unequivocally “fair”. If you use science-based capability classes you would have a wider range of “fair-ish” competitions, but there might be some weird overlap where some men, some women, and those in-between bridge accepted norms.
I think you go about it the other way: break data analytics and advertising off from everything else. If every unit has to be self-sufficient without reliance on data collection and first-party advertising I think you fix most of the major issues.