I think sports categories should be chromosome strings. "XX division", "XY world record". "XXY 400 m finals", "XYY long jump trials", ... Gender identity doesn't factor into it at all; the words "man", "woman" should not be used. Problem solved; you don't get to wedge yourself into competition with XX persons if you're XY.
- intersex people whose phenotype and genotype don’t match (putting them in the “wrong” category)
- chimeric people who belong in different categories depending on which part of their body you sample
- probably other edge cases I’m not thinking of.
If your goal is just to put people into categories, it’s probably a lot less controversial to split them based on if their earlobe is attached and whether they can curl their tongue.