They’re refusing to issue passports to people who have had their gender marker legally changed, and some bigoted employees have been illegally confiscating documents (like birth certificates and social security cards) from those who try anyways.

So if your drivers license gender marker doesn’t match your birth certificate, they’ll refuse to issue the passport, and there’s a non-zero chance that the person behind the desk will steal both when you try to apply. So now you don’t have a passport and you need to go through the arduous process of getting all new ID paperwork just to prove who you are.