The FIDE's ruling on trans men shows they "think trans men are men" (they probably don't actually, but that's what the ruling implies), yet they then ban trans women from women's competitions, meaning they don't think trans women are women, by implication. This ruling isn't consistent, isn't fair, nor does it actually accomplish anything besides driving out a minority group who already have a tough enough time just existing in the first place. It's also not even fair to trans men to strip their titles, as they likely won those titles when they didn't know they were a man.

The ruling here is in no way reasonable, IMO. It exists to hurt people and does nothing else. Trans women need women's spaces just as much as cis women do and banning trans women from women's spaces does not "protect the women" like some people cite for rulings like this, it just further alienates trans people. If someone gets bent out of shape because a trans person exists in the same space as them, they can go fuck themselves, that's their problem, not a trans person's problem.

I heavily disagree with you saying "and this at least provides an avenue for trans women to potentially participate" considering before this ruling, trans women could already play in both women's tournaments and open tournaments and now are banned from women's tournaments. It's the opposite of being inclusive. If you're a trans woman, would you want to go play chess if you're specifically told that you can't play in women's only spaces? No, you probably wouldn't even start. This new ruling specifically exists to discourage trans women from competing by othering them and saying they aren't woman enough to go play with the other women.

The best way for the FIDE to be inclusive is to continue just having open and women's spaces as usual and not fuck with trans people's ability to exist in spaces consistent with their gender. There were no problems being caused before, this ruling isn't fixing anything, it's just hurting people.