I just did the ShB role quest for healers and noticed that Giott is a male Lalafell (Dwarf) who is refered to as a female and looks very feminine. So either the devs themselfs can't make out the difference between male and female Lalafell (male Lalafell have darker ears) or this is indeed a transgender NPC.

Garland Tools also says it is a male character model:

https://www.garlandtools.org/db/#npc/1029998