For the trans people I know, "acknowledge the existence of" them basically means to treat them according to their self-understanding as communicated to you. Usually that means using the name and pronouns that they identify with and not asking invasive questions. The idea is, roughly, that you are acknowledging that they - the person in front of you, a real physical body presented according to their self-understanding - exist. Dead naming or using a gender assigned at birth would imply that you are making their identity subject to your own model of the world, they're an abstract notion to you. Or, worse, that you are addressing a person that doesn't, in their conception, exist. It's imprecise language, perhaps, and not every person experiences it the same way.