I think there’s a few things at play here - it’s a fringe, LGBT-leaning venue that will have been hosting shows like this forever - Judy Garland has always been iconic to gay men.
Jinkx is a Drag Race winner from much earlier times and has established a career on Broadway (was also the one in Dr Who), without that profile this wouldn’t have even made the news. Presumably it’s Jinkx’s show and production, creating an opportunity that wouldn’t have been there rather than ‘taking a woman’s role’.
Jinx’s act is old-school, in keeping with this sort of performance. It won’t be an end-of-the-pier type misogynistic display. Just someone who wants to sing Judy’s songs.
For what it’s worth Jinkx did Drag Race as himself, then went non-binary and I think now considers himself trans. I don’t buy any of that but still find his career interesting.