You know, it's kinda impressive how cool/progressive Japanese media can be in some cases while being the exact opposite in others. Like, the mental whiplash is almost worse than that of American media in some cases. If you were to play FF7 Remake or watch HunterxHunter, you'd see characters in them that are, while not the best, decent representation for people who are usually under represented. The treatment of Killua's sister, who was amab if I understand correctly, is pretty good as shes never called anything other than her or she, iirc: the Zoldic family situation is still terrible, tho, they're monsters.
The treatment of the crossdressing segment in the FF7 Remake is VASTLY better than in the original, and the way they treated characters with none traditional... cosmetics? Aesthetics? The none heteronormative actions and appearances of the honey bee man and the pretty bodybuilder guy, is what I'm trying to say.
But then you have something like Persona 5, which has a pretty terrible running gag involving two overly campy, stereotypical gay men, which, if the joke absolutely had to be in there, could have been replaced with a pair of golden girls-esque older women and probably worked better and less offensively. If the joke HAD to be in there.
Thank you, it's been some time since I watched it to the end, so I'd forgotten her name. But the fact they misgender her does show they're still an awful family. That and the torture, that's pretty bad, too.