Assuming the interaction is as reported in the Mail, and assuming that Sophie tweeting about is the trans woman involved: eh?
No names (apart from the woman reporting the story) are mentioned. So any trans woman could make this claim. They aren't being "outed" by the Tory woman or the paper, they have "outed" themselves. And if they did say what the paper reports? fuck that shit, you weirdo.
If the interaction was not as reported in the Mail and penis wasn't mentioned (maybe "jeans" I'd not thought of that and it makes sense) the same applies but bloody hell, Tory Councillor, WTF? stop it. (and the "outing" thing? same. Nobody outed anyone but the woman making the claim)
TBH if all interactions with trans women in toilets was, "we were in the cubicles, washed our hands, made small talk about there being no towels, shook our hands dry and then did that 'after you' 'no after you' thing when we left" I'd be ok with that.