Forbes has good article on transgenders in sports. What they propose is a good start in coming to a fair resolution to this problem and although it definitely is a problem right now, it’s not an unsolvable one...
”Trans women who transitioned before male puberty do not have a performance advantage; they would be allowed to compete on women’s teams without any restrictions if they so choose. However, in individual sports, trans women who have gone through male puberty would be allowed to practice, travel, and socialize with women’s teams if they want to, but they would be scored separately. For example, the University of Pennsylvania swimmer Lia Thomas would still swim in team meets and postseason women’s championships, but her times would be recorded in a separate, trans category.”
In sports it’s not discriminatory to separate participants by sex and/or have different divisions based on physical and age,differences. In other words a 227 lb heavyweight boxer cannot compete in the 147 lb welterweight division, and the heavyweight who wants to compete in the welterweight division cannot claim he is being discriminated against because of his weight.
I have a brother who still competes in power lifting but competes in the Masters division which is for us old guys, and a 28 year old can’t compete in that division. In my younger days I competed in Judo which also has weight divisions like boxing. At the end of a tournament there was often an “open” division which was open to any rank or weight, but the male + female divisions were still in place. Although some of the female Judokas could beat many of the males they were not allowed to compete against males in the open divisions.
Something like open divisions might be introduced into other certain sports for those who wished to participate in the open division. In an open division trans women and others of the same sex could compete with each other.
However it’s not discrimination to not allow a male who transitioned after puberty to compete against females for the same reason a heavyweight cannot compete against a welterweight.
There ARE ways to work this out so that it's fair to everyone if we really want to..