I can understand a bit of the thinking behind this from the parent's point of view. Or at least in so far as the story linked is presented.
Not sure about 'inspections', per se. Though I do think identifying young children as "trans" for the purposes of bathroom use is a bit much in some circumstances.
This is not to say I have an easy answer to this issue. However, I can understand the perspective some parents might have where young children are concerned.