Not seeing the problem with this? They're male. Why should they be in the female category?
The point is that sport doesn't directly care about reproduction, or chromosomal make-up. It cares about the body type. The category wasn't created because of sex - it's not like we're sorting farm animals for breeding - but because of the physical consequences of the sex. Primarily the results of testosterone.
If there were 15 sexes, it wouldn't necessarily make sense to have 15 events. You might decide that for practical purposes you could group the sexes into "testosterone" and "non-testosterone".
Just like you only have a limited number of weight classifications. Or even none, in most sports.
The boundary positioning or existence is a choice, with practicality being a factor. Not some fundamental principle about weight. Or sex.
DSDs effectively produce a distinct body type from the standard two. Whether you treat them as a third type, an impaired version of the higher type, or a valid variation of the lower type is something that has to be debated, like any rule.
Having the "female" category really mean "no testosterone" makes just as much sense, and probably more, than having it literally be about actual sex.
The harder-line you are on limiting "female" event eligibility, the bigger population of "male athletes with DSD impairment" you create. Which maybe is actually a good thing, in terms of creating a larger more viable Paralympic category?