I think the part you might not be getting is the lack of humanized depictions of trans people, including, it seems, within CP2077. It’s the last sentence in your quote. So the point is, by taking the approach they have, which is to allow you to have a “chick with a dick” or “futa” or the like (as the peanut gallery would have it), they’re basically opening up trans people to a large audience fort further mockery and fetishization, but without even providing a game which has trans NPCs who are positive (or even, it seems existing) characters. This is rendered especially tacky by the prevalence of said poster in the game. Which could be okay if there were a number of trans NPCs - something you would certainly expect given the setting and the heavy body-modification going on - who then humanized this, but that’s not actually the case. They also made a person replicating the fetish-y poster, in fetish-y cosplay, the winner of their cosplay competition, which y’know, is not exactly great in the context of the lack of humanized trans characters.
It’s not about “stopping hateful idiots” - the reviewer knows that’s inevitable. What the reviewer is discussing is why, given CDPR could have as many trans NPCs in the game as liked, they went with, according to multiple reviews, either none, or one who is a monster/creep (it’s unclear if they’re trans or otherwise queer). That’s a weird decision, frankly. Could they improve on it with DLC/FLC? Sure. Will they? I certainly hope so.
Anyway, the TLDR is they decided to include the fetish-y options, but didn’t balance that with humanization.
As an aside, you can’t do you latter example in The Sims (I’m assuming you haven’t played it), because Sims are godless monsters who know not the divine touch, and cannot follow any religion except, kinda sorta Harry Potter witchcraft or 1970s fitness cults or the like (none of which are intended to be religions). Further, the watermelon thing would be balanced out by the fact that there are tons of black NPCs in the game, and they don’t like watermelons any more or less than anyone else. Whereas in CP2077, it seems like you’re the only trans person in the city, to some extent.
As an aside to the aside, in Sims 4, the latest game, you can’t do it at all, because watermelons aren’t in-game. Perhaps because of concerns about that sort of thing, given they were in Sims. So one might see this an example of devs getting ahead of an issue, where CDPR have not.