The face-covering law includes items that aren't the burqa, such as bandannas and mascot/fursuit heads. However, it wouldn't surprise me if you're correct in assuming it's targeting a religious item, especially since the law doesn't usually get enforced unless it's a woman wearing a burqa.
The mod is not incorrect. Some people simply don't think or know about trans people. It's not right, but it doesn't necessarily mean they're malicious, so affording them some degree of grace is probably the best route to take.
Also your last comment in the screenshot is ridiculous because, like. What does yuri have to do with anything? Anything can happen in animanga, it shouldn't impact whether queer people are valid.
That doesn't surprise me in the least bit. I will have to look further into this. Regardless, it's a stupid law.