Feelings and opinions aside, I think this issue will eventually come down to whether or not gender dysphoria is legally defined as a mental illness. There are many mental illnesses, neurological disorders, and various little personality quirks that will disqualify a person from service. Disqualifying Mental Health Disorders and Medical Conditions I'd also be curious to learn whether the decision to allow transgender troops in the first place was motivated by sociopolitical pressures, or by actual acceptance of transgender individuals. I strongly suspect it was the former. Even in the LGBT community, there's been a long history of a lack of support for trans issues. Really though, I've yet to see any evidence that proves either side's arguments.
And, it got even worse for the LGBTQ community. In One Day, Trump Administration Lands 3 Punches Against Gay Rights