Anecdotally, it seems that bullying is a factor for butch lesbian teenagers and effiminate gay boys turning to transition. But there isn't much research on it.
There was a thread on here only this week, I forget which one, where a poster said her now adult son was convinced he was a girl for years as a teen. This was many years ago, before the rise of trans ideology.
IIRC although the doctor considered he might be dysphoric he ended up with a counsellor that basically said his problem was not fitting in, and he needed new friends. The parents changed his school to one further away and it made all the difference. He's now an adult man with no wish to live as a woman and refers to that period in his life as "a very stange time".
That is much likely to happen these days. That teenager would be much more likely to be put on puberty blockers and a path to medical transition, even though the evidence says most gender non conforming kids grow out of it (possibly into being gay adults).
(If the poster who wrote that is reading this, you really should put that story on a blog if your DS doesn't mind, it's a powerful story that's stuck with me).
There is a recurring theme of being accepted IMO. Of teens being accepted when they come out as trans "their true self" and of parents being accepted when they find the "support" community of Mermaid (who as far asn I can tell, enable them and are not too strong on science).
I have no doubt it can be great for previously bullied, gender non conforming kids to go from being picked on and alone for being a butch girl or an effeminate boy, to feeling they're something special, accessing all the support and validation from the trans community online ad possibly in real life, and when passing, to fit in. If they only lived as a child - then problem solved!
But the tricky thng is when they grow up. The solution at 17 might not be a good solution at 30. Being potentially sterile, possibly having never been through puberty, with sexual organs that don't function properly, with health issues and finding it hard to find people who want to be your romantic or sexual partner. That's got to be tough. And is it worth fitting in as a child? I suspect given the longer view, people might well decide it's not.
We're a few years off the law suits I imagine.
The other factor is this is a youth movement (in part). It's still on the rise, but it will wane at some point. Probably about the time kids realise the health issues aren't worth it. The next, younger generation won't want a part of it IMO. But - like most youth movements - it will have changed our society a bit. Or a lot if this bill becomes law.