This shows a muddle here. The GRA2004 and EA2010 put responsibilities on the government and organisations to treat people a certain way.
There is a power imbalance between an individual and an organisation, so there are lots of discrimination rules.
But none of those rules apply to individuals. An individual is free to discriminate. An individual can do whatever they like, and can reject a person for any reason. The GRA2004 and EA2010 do not apply to individuals.
The problem comes in where an individual finds themselves interacting with an organisation - such as a woman dealing with the NHS.
The NHS may feel it may end up in breach of its GRA2004 or EA2010 responsibilities to "trans" staff if it does not compel women to treat a man as a woman. Right up to vaginal examination. She is roped into their role-play.
What's not clear is how much freedom they have to compel women to do this.
I'm pretty certain this sort of scenario was never envisioned during GRA2004 debates, and if anyone had raised it they would have been laughed at for being so ridiculously paranoid. Of course this would never happen.
As Helen Joyce has said - once you let "1 = 0" in one part of mathematics, it spreads. You can't let a falsehood stand in one place and expect it to remain there.