I’d say at the amateur/non-elite level (or more specifically when money/career isn’t at stake) skewing towards inclusion is the right choice. In the events I compete in, I’d like to see a transgender/non-binary category, as well as the option for trans women and trans men to compete in the gendered categories if they prefer. Pretty sure that’s how Rooted Vermont did it, and Vermont is pretty good when it comes to gender equality issues.
At the professional/elite level of course it needs to be fair. But as Dylan’s video suggests, more research needs to be done to determine whether inclusion can be fair (given that studies on high level trans women are essentially nonexistent), and this will be sports specific, so that decision should probably be made separately by each sport’s governing body.