This is Taiwan. Taiwan previously required 2 gender dysphoria diagnoses, and proof of surgery for ID gender marker changes.
A court recently allowed an ID gender change without surgery, in some pretty exceptional circumstances., showing the surgery requirement can be waved in exceptional cases. The case in the article was a trans woman who's case wasn't exceptional enough to skip the surgery requirement.
This doesn't show a rollback of trans rights, this is just how court precedence are established. You can't know where the precedence ends until someone's case slams headlong into the wall next to it.
Edit: This same article is posted to this community with the headline, "Beyond the body: The battle for gender ID rights" which seems a more honest way of framing the situation. This story is about more than just a single case.