I might be going out on a limb here but saying that you can create a transgender individual and it would be funny if the developers made the game recognize you as a freak miiiiiight be taken as a slightly offensive comment.
I didn't want to offend any gender, and I didn't want to racially discriminate against dwarves, insult their feelings. I just wanted to say that if a player makes an obvious freak, then he should be punished, for example, sarcastic comments and reactions from others.
The reason why it comes of as offensive is because "What is considered to be a freak?"
A bearded lady? Yeah, women all around the world are already very insecure regarding their facial hair. They don't need that crap in a videogame.
A guy with pink hair and make up? Same thing applies here.
I do understand what you mean since lore wise we know that prejudice already exists among the population(just ask a drow or a tiefling) and that the setting is somewhat medieval with a bit steampunk tech, so somewhere around the 13th or 14th century in our world which, based on our own history books would mean that people not following the conformed rules of appearance set by culture and society would have a hard time in places of civilization. But lore wise Faerun is also populated by elves, gnomes, halflings, dwarfs, orcs and whole bunch other sentient humanoid races so there should be a somewhat built up tolerance for odd looking characters. It might also be worth mentioning that WotC is very much on the guard of being accused of not showing acceptance of all races/genders/sexualities etc after all the hate they've been given the last year or so. So I don't want such a feature put in and I would be overly surprised if it happened.
On the plus side, that fear of negative reception among media can be a good motivator for body types. I e #WotCFatshaming
