If the guidance is going to 'increase tranphobic bullying' then if you've actually read the guidance, you would have to draw the conclusion that 'transphobic bullying' actually means 'other children don't have to get undressed in front of you' and 'don't have to use compelled language for you;. And staff cannot transition children without accountability and parental involvement.
And that's it. That's what all the fuss is about. That other children are to have rights TOO, and safeguarding cannot be used to politicise children and separate them from their parents.
And then you start to realise what you're dealing with, and that 'nice' isn't going to help here.