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Anon has a power fantasy
(sh.itjust.works)
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I remember seeing the same for trans people, but in granblue fantasy some people still weaponized how Cagliostro was a born a man to make her mad, doesn't matter how she looks or what she has down there, bigots will exist even in fantasy.
Fantasy worlds really often have sex as something one may select. It doesn't serve the non-binary folk all that well, but there are several ways to pick either of the binary options
Another problem is that in order to have magic that is capable of fully transitioning someone, you basically need to enable full body modification for other purposes as well, so transhumanism becomes something you need to represent in your story (unless you just add arbitrary and meaningless restrictions to the magic).