Ms Peggie confronted Dr Upton after becoming uncomfortable when the medic started to undress in the changing room.
NHS Fife argued its guidance at the time was that transgender staff should be allowed to use the changing facility of their acquired gender.
In April, the health board was told to admit defeat after the Supreme Court ruled the terms “woman” and “sex” in the Equality Act refer to a biological woman and biological sex.
Six months later, it told staff to use facilities that correspond with their sex at birth, rather than their gender identity.
The most intense pressure on Ms Potter came in the summer following NHS Fife’s extraordinary 1,700-word statement on the Peggie case during the tribunal in Dundee.
This intervention was intended as a fightback against criticism.
But it resulted in a rebuke from Scotland’s top transparency watchdog, crashed NHS Fife’s website and was edited multiple times with sections erased.
Hours after its release, the organisation was forced to clarify it did not intend to blame Sex Matters – the gender-critical charity supporting Ms Peggie – for threats of physical harm and sexual violence linked to the case which were reported to police.
Scottish Conservative leader Russell Findlay described the fallout from the statement as “dire” and “an ongoing slow-motion car crash”.
Other politicians told Ms Potter to quit.
Harry Potter author JK Rowling – who has publicly supported Ms Peggie – also waded in, calling NHS Fife “hapless” and “unprofessional”.
Internal revolt
We revealed the chief executive was facing an internal revolt over the situation, with confidence in her leadership dented.
But it was staff members sympathetic to Dr Upton – speaking to The Courier on the condition of anonymity – who felt the controversy had been mishandled by the health board which has been accused of punishing Ms Peggie to protect the trans doctor.
And the tribunal has proved costly.
NHS Fife has spent £300,000 of taxpayer cash defending the action, with those legal costs likely to rise.
Some employees think NHS Fife could have attempted to settle the case, which has made global headlines and seen several of their colleagues cross-examined about their roles in the saga.
One told us: “Doctors, senior nurses and others have had to pay the price in front of the tribunal.”
Last week The Courier revealed NHS Fife was embroiled in a secrecy row over the 1,700-word release, with our Freedom of Information (FOI) request for details on pre-statement discussions rejected.
The health board’s FOI team claimed releasing any relevant documents would prevent the “effective conduct” of public affairs.
“Once again NHS Fife is refusing to release important information which should be in the public debate,” said Mid Scotland and Fife Tory MSP Murdo Fraser.
“Was this Carol Potter, or someone else in the leadership team?”
Mr Fraser’s Conservative colleague Roz McCall has also been critical of Ms Potter’s handling of the Peggie controversy.
“Trust in the board’s leadership has been badly damaged by a period of chaotic decision-making,” Ms McCall said.
“I have been clear for some time there must be accountability at the very top.”
She added: “Our exceptional doctors, nurses and staff deserve leadership that matches their dedication and puts patients first.”