Given that the Dean apparently said that she has to present proof that she has completed reassignment surgery. At 22, it is possible this is the case - but not likely - so he was essentially telling her that the school wouldn't bother to stop the harassment.

Hiding under the cover of an out-dated law is pretty much the opposite of "not tolerating harassment of any kind".

I am not surprised by this at all. I am a genetic woman and a lesbian. There have been times in my life, especially when my hair was very short and I was much thinner, where, on first glance, you might not have been able to tell if I was male or female. Once, in Charlotte Douglas airport, I was washing my hands in the women's restroom and a security guard asked what I was doing in there. I calmly told her I was female. She asked for ID proving it. I gave it to her. Luckily, it didn't go any further than that, but the woman looked at me with clear disgust. If this can happen to a genetic woman who doesn't fit what people think a genetic woman should look like, then imagine the situation with transgender women. In short, we still have a long way to go when it comes to stuff like this.