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This law is very unfortunate. If you want to combat this world crazyness that is political correctness and radical leftism, you don't do it by introducing a wrong. Clearly people who are "transgender" (mixed gender) should be able to decide which toilet to visit.

But there isn't such a state which actually is neutral gender, but you can be of mixed gender. Genitals can be of one gender or in rare cases a weird mix (something that literally is inbetween a coc and a pusy), and at the same time the brain is predominantly of the other gender, or rarely a more even mix.

Typically these new gender identities are ideological or political in nature, not factual or biological.