[Captain.Remy]

Exposed adult genitals around children is never OK whether you're a transgender person or not.

To answer some questions about why that person was allowed or is considered as a woman, it can help to know that some countries/states allow updating gender on legal documents based on either self-identification or based on proof of medical procedure for gender reassignment. I'm unsure if that person is from California or not and I'm not fully aware of California laws for gender legal update, but that's a beginning of an answer.

It's a shame these kind of actions happen and let's not take it out to the whole communities because those are isolated incidents (and again, exposed adult genitals in public places are not OK whether you're a cis person or trans). It's a tough discussion to have on both ends of the spectrums (same as trans people in sports etc)