Scientific Institutions - Is this Scientifically accurate?

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Consider this statement by a leading MEDICAL journal

If the point validated by the available peer-reviewed science?

>Sex designations on birth certificates offer no clinical utility, and they can be harmful for intersex and transgender people. Moving such designations below the line of demarcation would not compromise the birth certificate’s public health function but could avoid harm.

Wider Discusssion:
What issues are there with leading scientific institutions making the point that sex is not an important or even any significant scientific demarcation?
Are they correct?
Are critics transphobes?
How far do political influences and money govern such statements if at all?

https://twitter.com/NEJM/status/1339616345353154560?s=20