It’s storytelling and theater. You go with what you feel makes sense to tell the story you’re telling, or what would make the crowd happiest.
At least, that’s the ideal scenario. There can be plenty of other reasons.
That depends on the philosophies of the owners/bookers.
Some like to decide based on their plans (which can always change), some decide based on crowd reaction in the build, some might just flip a coin.
They need to aggressively police unfair advantages in sports entertainment. Can you imagine if professional wrestling had something like a steroid scandal? They'd never survive it!!!
And if the most public promoter in the country and most famous American wrestler in the world were BOTH doing it and then swore under oath that they didn't? The industry would collapse in on itself!!!1!112
They also don't stop to consider the very first hurdle to their pretense at an "argument":
You keep getting gigs. While being explicitly transfemme. Like, shouting from the top rope transfemme.
They also complain frequently about Nyla having an "unfair" advantage too, particularly when booked against Riho. Those heads on the platters will be quite hollow.
Boy these folks better never watch actual lucha libre, because their heads would explode. Tiny ass luchadoras going up against giant luchadors. Micro wrestlers. Exoticos. They wouldn't make it past the first match or two of a lucha card.
Omg, if we can't trust the revered institution of professional wrestling to uphold the virtues of truth, honor, and complete honest-to-god unscriptedness then what are we even doing as a species?
Counterpoint: endless and increasingly pointless nattering about the imagined advantages of trans people would make an absolutely hilarious angle for a promo that wanted to make something out of it
