I'll summarize:

• The contest organizers don't accept trans women (AKA assigned male at birth, transitioned to female)

• This means that they are being transphobic, they aren't treating trans women as women.

• The person in the article is the opposite, assigned female at birth and transitioned to male. AKA a trans man.

• This person is considered a woman by the beauty contest despite identifying as male.

• He entered the beauty contest as a form of protest and to bring attention to the blatant transphobia.

Did I miss something about neopets?