I only see an issue with it if you are in-between getting the identification modified as the gears of beaucrarcy grind very slow
Or, you know, you live in a red state that fights tooth and nail to not update that information, all in the hopes that this day would eventually come.
Updating your vital records is a state level item, and the process will vary by state, and that’s a requirement to get it changed on your Federal passport. Please don’t forget that a large amount of states have been trying to pretend these people don’t exist, and now the federal government is trying to help make that a reality. For an example of the difficulties as reported 3 years ago:
States requiring proof of surgery, court order or altered birth certificate to change gender marker on driver’s licenses
Georgia.
Guam (U.S. Territory).
Iowa.
Kentucky.
Louisiana.
Northern Mariana Islands (U.S. Territory).
South Carolina.
Tennessee.
Texas.
States requiring proof of surgery, court order or altered birth certificate to change gender marker on birth certificates
Alabama.
Arizona.
Arkansas.
Georgia.
Guam (U.S. Territory).
Iowa.
Kentucky.
Louisiana.
Missouri.
Nebraska.
New Hampshire.
North Carolina.
North Dakota.
Wisconsin.
States barring residents from amending their gender designation on official documents
Montana.
Oklahoma.
Tennessee.
West Virginia
I’ll note again that this was 3 years ago, before the massive wave of anti-trans legislation in the last couple of years.
If you’re not out yet, it’s not necessarily an issue, but masking hurts them a lot mentally after a while. Those who are already out but haven’t changed their documents have to go back to masking (assuming they’re willing to) to move forward with getting updated documents. And gods forbid you’ve started the process but it’s not completed, because they might straight up take your docs and tell you to fuck off.