Would it come to as a surprise to the Kiwi that Nintendo and LGBT themes are nothing new and this goes as far back as the 1980's when Nintendo was still figuring out how to do games.
Birdo is Nintendo's first troon character and the first troon character in the Mario series (made their debut in Doki Doki Panic and later on in the Mario series), Vivian would also be another troon character in the Mario series (made their debut in Paper Mario: The Thousand-Year Door and this character being a troon would be uncensored in the Switch version while the old American Gamecube version had this detail being censored back then), Baten Kaitos Origins has one canon non-binary character, one of the Earthbound characters is gay in canon, and the Fire Emblem games are reowned for its LGBT themes and canon LGBT characters.
This is really nothing new for Nitnendo. Wait until Kiwi Farms find out about the really raunchy games that were only released in Japan on Nitnendo consoles but never saw an international release back in the day (while most of Nintendo's first-party games are known to be family friendly, there were games that got released in Japan on Nitnendo consoles but they never saw the light of day outside of Japan back in the day).