Twitter’s modified policy is a step back for the platform, especially when Instagram, Facebook, and YouTube don’t even maintain the same protections for trans people that Twitter once had. Last year, GLAAD gave each of these platforms fairly low scores in regard to LGBTQ safety, privacy, and expression but noted that Twitter and TikTok were the only two platforms out of the bunch that had specific policies against deadnaming and misgendering trans users.
So now the only major platform that has this policy is TikTok...famously 'woke' (silly term these days) companies like Google don't even seem to have this policy. The policy was only in place for the past few years at Twitter, so this in fact seems like its just a reversion to the mean rather than some kind of direct attack on trans rights.