To any trans person, that phrase is a klaxon. It’s an alarm bell that tells us the person we’re talking to is actively transphobic.
So we report it, the mod or admin who isn’t trans feels out of their depth, the trans person doesn’t have the spoons to explain it, and the transphobe stays in place, now empowered to keep their transphobia going, as long as they keep it at the level where most admins and mods don’t recognise it.
And that’s what the threadiverse feels like now.
But on microfedi, there is a much greater awareness of these things, and someone saying that would be dropped or defederated from most instances very quickly