This policy mischaracterizes watchful waiting as unsupportive. Schools should acknowledge that changes happen as the brain develops and that the ultimate outcome is unknown at an early age. Children should be allowed the freedom of self-expression without having to adhere to a label that may not fit in the future.
As it pertains to bathrooms, this policy encourages transgender children to ignore or perhaps even mourn their biological gender. We can affirm the rights of children to explore and develop their identity without encouraging them to disdain their anatomy. There is no compelling reason why bathrooms should be selected on the basis of identified rather than biologic gender.
There is clearly a need for more research on safety and long-term outcomes of a gender affirming approach.