The IBA statement that was released before the bout made it clear that these athletes were tested and found to be male athletes with physical advantages over female people.
And it does not matter a jot whether this male athlete loses.
This is a claim that is based on falsehoods. The falsehood being that you are using this male athlete's mediocrity as leverage to allow them to compete in a protected sports category that they should not be competing in.
It doesn't matter that this athlete has not been good enough to win. They are male. Their body has been tested and found to have advantage, as per the IBA's statement.
Using the logic that you have used here, as long as this person doesn't ever win, that should be fine. It doesn't matter how many female athletes they harm along way. Either through injury or through taking a female athletes opportunity when they are male.
The point is, this is a category boundary being ignored for the sake of a person's feelings or to uphold their perception about themselves when that perception does not reflect their material reality.
Would you feel the same way about an unfit 25 year old playing a contact sport with a female who is over 65 years old when it was a masters category event? Is that ok with you as long as that person did not win? What if them being there significantly injured the competing female athletes ? That is what the logic you are using results in.
Male people have, in general, more than 160% the punch power of a typical female. These athletes that the IOC have allowed have at least that much more power behind their punch. We know this because the IBA stated they were not female people and that they had been assessed to have advantage over female athletes. ie. these are male athletes.
There are many physical advantages that these male athletes have. I am happy to list more if you need.
However, the female athletes that they are punching have safety needs that are rather different than male people need. Female people have a greater risk of brain damage due to our more delicate brain fibres. This has been studied and is documented. So... that 160+% power difference is significant to the safety of female athletes.
Additionally, our bones are less dense. So not only are female people more prone to brain damage from a punch, but we are more prone to have our bones broken by that punch. Especially facial bones.