Specific Issue:
I rolled a halfling druid, and selected non-binary for the gender. I selected the female body type because I was only given two options there. However, I found that my character is consistently addressed with female terms and pronouns throughout the game. Specific examples include Gale referring to them as "My Lady" and Mattis referring to them as "ma'am". I have two others in my in-person D&D group that rolled non-binary characters, and they are addressed according to body type, not gender identity. So on PS5, the gender flag appears to serve no purpose whatsoever.
General Complaint:
After everything that Cyberpunk promised to non-binary gamers and failed to deliver, I'm hesitant when a studio says in promotional videos that (paraphrasing) you can build a character that represents you, and have their identity recognized throughout the game. Everything I saw for BG3 gave me this impression, and was promising. But then I start playing and am allowed (for halfling anyway) to pick either a hot, curvy, voluptuous female, or a dumpy, doughy old man. There are no sliders to adjust things like hips, waist, bust, curviness, etc.. So I try to create a non-binary character and end up with a female body type with an obnoxiously large bust (no sliders to adjust) who is gendered as female the entire game.
I'm hoping this is just a bug that can be fixed and not something that was intentionally omitted or tacked on last-minute. The fact that the only "gender-diverse" option is being able to swap genitals on body types and THAT'S IT leads me to believe that this was something that rushed or tacked on to placate a portion of the intended market. Whatever the reason, it is not functioning. Given the size of the LGBTQ+ D&D fanbase, I would hope this was just accidental. If not, it's a pretty big disappointment.