Admittedly, the explanation is entirely a retcon. A reason added after the fact to explain the matter. The post your quoted is a bit more accurate.
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That was just the translation team covering up an earlier mistake. That character was repeatedly referred to as one gender before it was revealed in English, and then when the reveal happened they'd learned that they were wrong the whole time. Originally that character was always referred to gender neutrally. There was no gender transformation originally.
I agree there should be less restrictions on gender locked items and other such items however I feel the best way to do this is have 2 models of each item that differ slightly to wether or not a male or female are whare in them much like the hempen underware sets chage depending on race or the primal gear how if the chest is on males is open and females is covered by a corset
Funny thing is that my character is actually a crossdresser. I just put that he stuffs his shirt since I imagined him to appear more lithe hence I must use a female model with the chest size at minimum. I wish we could customize the bodies better but maybe that could happen way later in XIV's age.
I'd think making gear that fits both sexes and look almost identical could save time, because you don't need to make the clothing models completely different. Making more outfits, feminine or masculine- fit both sexes and appear very similar or identical can actually be more lucrative in regards to time.
Edit: Fixed grammatical errors.
Can you please tell me what items you used? I would love to use this