Indeed it does. That poor little girl growing up will presumably have to wait until she's 18 and can demonstrate that she's been "living as a woman", get a GRC and then her birth certificate can be changed.
Also, just thinking this through, it's possible that there will be a mad scramble where lots of TW (who currently have passports and driving licences with F in them) apply for GRCs. Under current law, they need to have a diagnosis of gender dysphoria as part of that application... but many of them openly say that they don't have gender dysphoria. There's only so far the public sympathy will stretch on this one before a mass peaking event unfolds before our very eyes like the Severn Bore....
TW with penises who don't have gender dysphoria who need a GRC to... oh.....
(If they open Reduxx at this point their eyes will fry at the realisation of what they have just learned)
I suspect the number of women who feel completely comfortable sharing spaces with TW is going to drop off a cliff. Women's Hour will presumably cling on to the desperate hope that all these women are Christian and that this is why they don't believe that the TW are women (I'm still pretty shocked that Darlington nurse was asked this question TBH).
(Still curious about that law... does it even exist???)