I'm afraid I think this has got be given central credence and become more and more the focus for discussions and decisions. Everyone needs to be aware of this.
When you are talking to someone who believes in their own selective reality, and their right to silence and punish anyone who challenges their selective reality, you cannot expect them to make a lot of rational sense, or be interested in realities that contradict their personal one. Such as law. And other people's interests.
You are not engaging with someone who is able to share objective reality with you. You are engaging with someone who is open about their feeling threatened by it, and believes that they can make you agree with them that reality is what they say it is/wish it to be. And that you are harming them if you do not do this, or mention an aspect of reality or a fact that they have edited to meet their own needs, and that it is appropriate for you to be shamed, coerced or punished for not enabling them, by insisting on your own perceptions and actual facts.
And this is where I think the decision has to be revisited regarding mental health. Because mental health is your capacity to deal with reality. And it also needs to be considered as to whether this is compatible with capacity to hold a job requiring impartiality or public service.
For example providing services to those who are not willing to meet your needs, or agree with you. Or accepting that another person has the right to say no to you for a same sexed service.