I don't think it's as much that they're blurring the boundary with their policies as it is that they're just doing a tremendously awful job of speaking to the crux of the issue, instead opting for sound bytes that invigorate the base.
The protocols and metrics used by the Olympics, NCAA, etc. regarding trans athletes are complex and stringent and comprehensive enough that "lebron james wears a dress and dominates the WNBA" is *only* a silly hypothetical and nowhere near a possibility. But nobody really wants to dive into the complicated grey areas.