It's like taking kids to a burlesque show - regardless of your views on it in general (I'm not a fan, fwiw) it's not for kids, has never been meant for kids, has always been a highly sexualized form of entertainment that nobody in their right mind would have considered taking kids to see even a decade ago.
There was some thing with a cafe full of kids where there was a burlesque show a while back. Just as inappropriate as drag queen story time. What's next, family day at the R rated horror movie festival? I love horror films, but they aren't for kids either. Saying that something is not for kids is not saying it shouldn't exist, it's drawing a clear and appropriate boundary between spaces and activities that are adult only and those that are family friendly. It's not "stigmatizing" to say that drag is not family friendly any more than it would be to say that the horror film fest isn't family friendly. Or that a cocktail bar isn't.
I'm really tired of the idea that it's good not to stigmatize people being weaponized in an attempt to erode reasonable and appropriate boundaries that exist to protect children from things that they're too young to understand or enjoy.