No the family are not only saying that the child doesn't conform to stereotypes, they are saying that the child never identified as female, they are saying that the child knew their gender from as young as 18 months.
Then the family do not understand child development and language acquisition.
Dr Katie Alcock
"So researchers are clear that we are talking about children’s knowledge of sex, and that this can’t change. A nice quote from a 2003 paper:
“Categorical sex is an essential, immutable attribute of people that is maintained (by self and others) independent of changes in physical appearance (e.g., in hairstyle, clothes, or make-up) and of changes in behaviour (e.g., cross-sex play behaviour or homosexuality).” (from Trautner et al., 2003, in the International Journal of Behavioral Development)
Nevertheless, it takes children some time to work out both whether they themselves are a girl or a boy, and that both they and others cannot change sex. Working out which they are themselves happens earlier, and is based in all the studies that have been done on physical appearance and stereotypes. Have a look at what James, aged 3, has to say on the matter
James is firm that having short hair makes him a boy, and that it also makes other people (and dolls) into boys. My own child aged four was convinced a teenager we knew must be a boy because she had short hair.
Making generalisations is a very useful skill for a baby or child — if they couldn’t make generalisations, they would never be able to work out that a new cat they saw was in fact a cat, or a new apple was just as good to eat as the last one, or a new car is likely also to go places. Children can work out at a very young age that there are men and women, boys and girls, in the world — it’s probably quite useful for them to work this out in the general scheme of things.
So when they see all the girls at nursery wearing pink and having long hair, well, that’s what girls do! And they also realise, from what people are saying, and from how their parents dress them, what toys they are given, and what toys other children who look like them (same clothes, same hair) what they are supposed to like and do based on what sex they are" (continues)
So, based on the idea that girls have long hair and boys have short hair, James is also age-perfect in thinking that when appearance changes, sex changes too. Until the age of about 7 (yes, 7 — in some children it’s older) children think that when something changes its appearance, its underlying reality changes too. This doesn’t just apply to sex, it applies to pretty much everything." (continues)
medium.com/@katieja/young-children-reality-sex-and-gender-3421f4f165f1