It would seem Japan, and in particular Nintendo of Japan, is more advanced on that regard than the west. I mean, as far as I know two characters in Super Mario games, Birdo, and a character whose name I don't remember, are officially transgender in the Japanese version, But that is not their defining trait, it is so not their defining trait that it could easily get censored in the West (A mistake if you ask me) without notice from players.
I mean, the problem with the current "inclusion", "representation", and "diversity" trends is that it is all about tokenism, the characters are made part of a group as only or primary defining trait.
A transgender archer is not "The archer whose arrows rarely miss, had a troubled life as a thief, lived as a bard for a few years after escaping jail and became an archer to follow the footsteps of a person she was in love with, also she is biologically male but nobody really cares and it is not even brought up during most fo the plot", but instead we get a character who is only "That transgender male to female archer, whose only backstory is all the emotional trouble of being transgender, not even relatives mentioned, just agnst."
It is the token black character all over again, but now with more token quotas to fill, which means now there is even less space for character development because every single character must be a token something.