...so they can trans the character, but they can't do the traditional Br*tish theater approach of having a young man play a woman? 
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I had someone seriously try and tell me British comedies feature crossdressing as a homage to Hellenistic theatre, and is therefore not "woke" like other forms of crossdressing.
as a homage to Hellenistic theatre
The Greeks were notably not at all gay, ever. 
Theater kids, known to be exceptionally cishet
britaboos
traditional british culture is simply too exotic and complex for you uncultured homosexuals to understand 
Yep. They also can't have a woman play a man, which is a kind of crossdressing even out of the theater that's always been regarded as not that big of a deal, because patriarchy rewards female masculinity to a certain point and punishes male femininity, and resulted in them having to cast a kid who can't sing or act as the male lead, in a MUSICAL, because the only kid who auditioned for the part who can sing or act, is considered a girl in school paperwork.
contrary to their gender presentation
If itβs a play, then their gender presentation matches the character, no?
Iβm assuming the law isnβt actually about presentation though 
No, it isn't. But my brother's school is surprisingly good about that stuff despite being a church school, they maliciously comply or straight up don't comply with legislative transphobia as much as they can, but they have to be careful sometimes, there's things they can do for trans kids but all that means is that gender identity or expression becomes the Deciding Factor for this type of gender based rule. Look, they can't cause trouble for a kid whose mom told the school she's a girl if she's following the rules that apply to girls. But they do have to then deny that kid anything higher authorities designate for boys only. Which means really stupid things happen to all the non-binary teenagers. Usually based on usual gender presentation. The kid who was obviously best for a male role but the casting team weren't allowed to choose her over this? Not even a girl. Femme presenting enby. But considered a girl by the highly binary system, so they couldn't cast her as the male lead. Despite both of the binary boys who auditioned being unable to carry a tune in a bucket, and the play being a musical.
Definite βIt hurt itself in its confusion!β moment.
Absolutely. Common transphobe fail. Look, transphobia isn't funny, but it's often very "laugh or cry" and this kind of shit makes the laugh response a lot easier, so I'm really glad that transphobes keep proving that most of them are idiots. Which tracks, because transphobia is inherently stupid.
Another one for the Riley Losses Society for Incompetent Transphobes.
Well, you can either laugh or cry about transphobic legislators winning. But incompetent transphobes that do the opposite of their goals sure make laughing easier than crying.