They do not see mot understand that it is all in how it is presented. First it is not even that much in character, just a damn statement in the face of political nature. There is 0 consequences to be gay, trans, whatever it might be, in this game. Witcher series done it much better. There is a certain stigma to it or people find it weird. North of Friendly Arm Inn there is a farmer looking for his only son, his only son died to Ankhegs, guess what? Now he loses the farm. Same would be if he had a homosexual son or daughter, the only child. Not bearing children. Their family farm gone, no offense ot you Americans but this is typically a bunch of no good, politically driven fan fiction north Americans writers who read 0 history books about countries who did HAVE middle ages. Sure, Faerun is fantays middle ages but it do not make it less shitty, like the Dark Ages. We see the heroic life of adventurers, heroes and gods but that is a totally diffrent sphere. A fucking shitty farmer, with no education, barely any gold, will have a really bad life. Evil is very real, so is magical plagues and the undead...orcs and other things. So he got all of this to worry about, but then his only son runs off with one of those gay adventurers and his whole life is shattered, wife dead from last orc invasion, daughter got murdered by bandits and the crops are dying, but he atleast got the farm that he been struggling on since childhood that his great grandpa bought after some years of working as a caravan guard. And now his only son, has escaped to live out his gay fantasies with some elven fop. To even think the farmer, the village or the tribal barbarian in the north can even remotely do waht heroes and gods do is very stupid. Hell, there is other cultures to. How do they react? No one even points that out. Like if they ever given us a Drow Elf of the normal kind. They would clearly not accepted some weird human saying he is a female or if there a culture of more masculine mindset they would probably mock this man or a homosexual one. It is also rather silly that these people are a-okay with the dark undertones of orc rape with half-orcs, the male submissive society of the Drow but also killing said creatures cause "They been evil before". Suddenly breaking the normal day mold is okay, if it is "evil". With trickers, manipulation magic and lies all over the place. No one considers that these transgendered are either cursed some how or manipulated or even possessed? It is such a fringe minority that someone in the world probably would think so and the lack of dialogue options shows this is horned in to be accepted, even if you play a 1 reputation, Blackguard half orc of hatred.
If done well, it can be pulled off wihtout complains but when there is no consequences of breaking pattersn, well...then it should not be added cause then it is just added in to either try to brainwash stupid kids or throw a political statement. Farmer Jim-Bobby don't have time to play female. Nobles, heroes, gods always has managed to get away with more shit than the peasants, farmers and soldiers, the lowest in society.
And in all fairness, BG1 had some fucking cheesy dialogue to, like that Aloe Vera comment in the CLoakwood...Atleast it was only cheese.