I mean, the game is portraying bad people. Grand Theft Auto has always been that. Rockstar has shown with Red Dead they create likable, morally ambiguous characters so it's not like this is some oversight. I just don't think murderers and thieves are going to draw the line at being transphobic. It would be a bit more jarring if Michael, a boomer-type horrible man, was just like "Oh sorry, I didn't mean to misgender you." That's not him. You're supposed to go "Jesus, this guy's an asshole." I do think the actual trans NPCs could be represented in the world a bit better but at the same time, this is a world where EVERYONE is portrayed poorly. Cops, citizens, etc etc. They're not really singling any one out.