It's the Aboriginal version of 'transgender / queer'.
The paradox is - if there isn't an objective way to identify these groups, then arguably they do not exist other than purely in terms of 'self identification' which is a serious blow to the legitimacy of anything, really.
So if LGBTQ+ were formal categories, then we could just use those instead of adding 'Two Spirit'. We wouldn't use the Aboriginal, German or Japanese words for them, because that would make no sense, we have words for things which exist already.
But because categories are culturally defined, but more paradoxically - self-defined - then it exposes a serious problem of postmodernism.
Everyone should apply to the position as 'Two Spirit' - there literally is no material definition for the categorization, and the Canadian Supreme Court would be bending itself backwards in Asana Yoga poses to find out how to apply the Woke Terminology that lacks any definition.
The Law is inexorably funded on objectivity, it can't very well function otherwise.
Pulling the thread on this Sweater will undo it completely, the best thing to do is start pulling on it hard because it will expose the inanity of it all.
I actually do support people in vulnerable situations, and getting people from marginalized communities into systems which they feel they can't participate in, but this isn't the playbook we should be using.