I'm trans and I thought it was myopic at best... nipples themselves don't present as anything, being as they're just body parts, and a policy that's based on presentation gets into the weeds of "well okay what counts as female presenting". Like, I am pretty damn sure that if someone puts up a shirtless photo with visible breasts, they're not about to go and double-check whether the person in question actually identifies as a woman -- and if it's a closeup on said breasts, there's not going to be any presentation markers to look at.

Specifically as as nonbinary person, I've never been particularly enamored of the idea that you can Just Tell (TM) by looking.