Let’s use a sports example. Trans women have an insane advantage over cis women because of the testosterone they produce. Should they then be allowed to compete in women’s sports? Saying no would invalidate them and make it easier to claim they aren’t actually women but saying yes would then interfere with cis women and their accomplishments. It’s even more complicated than just hormones too. Because we can (and do) regulate those for sports and when transitioning. But something like biological males having higher lung capacities and vo2 maxes means a trans female will always have some level of advantage in sports requiring cardio.
But it doesn’t invalidate who they are at all though either. We bar people without legs from running with the ski prosthetics against people with biological legs because it offers a significant advantage as well. It doesn’t take anything away from who they are, it’s just different. Sports are kinda just fucked on that for the foreseeable future. To be fair a great many chemical things that haven’t made it to the rulebook but aré likely detrimental are done to most competitors at the highest level of any sport, it’s all subjective anyway what sort of natural or artificial advantages we want to allow or care about in entertainment.