People sometimes assume religious traditions’ ideas about gender have always been conservative and unchanging.
In many cases, "conservative" views are actually new! Conservatisms always claim to stand for the values of the past, but they quite often make up a past that didn't actually occur.
“The past” - you know, back when they were much younger and didn’t know how the world worked, so they made up a bunch of assumptions in their head and got mad whenever anyone told them they were wrong because it was obvious they were right since they’re brilliant and they came up with it.
I always say if it's in nature it's totally fine. And we see this in nature, Godzilla also swapped his gender mid-movie so what is the freaking problem with some people to acknowledge this?
I always interpreted the “don’t be gay” Bible thing to mean “if you’re not gay, don’t pretend to be” kinda thing. So I’ve always thought what the Bible says is wrong is to not accept your sexuality & try to change it.
I grew up an Orthodox Jew (I’m not as an adult). The way I learned it was that existing as a gay person, as in, that’s simply who you are, isn’t problematic. The issue is the act of gay sex itself, which is what the verse in the Torah refers to.
That is to say, your understanding is correct.
Disclaimer: I don’t care about it myself. Just explaining it how I was taught in Orthodox schools.
Probably says something else too, I’ve been seeing interpretations based on the Hebrew texts, and, unsurprisingly, the versions people know tend to get it wrong & just use the text to reinforce preexisting beliefs.