I guess you could call it a semantic quibble, but you could also call it excessive spin. It sounds more like the student was transitioning socially, and the school facilitated it. Saying the school "transitioned" the student implies that the decision was made by the school, not the student.
The example cited is a case when the student disagreed with the parent, and the court ruled they must defer to the parent. Okay, if that's how the law is. I reject the implication that the school is the prime mover of events here.
So that highlighted bit is the problem. The schools shouldn't be in the business of
facilitating a child's personality development. The schools shouldn't be
facilitating a child's social presentation as transgender, no more than the school should
facilitate a child being gay, or a child being an emo or a goth or a metal head. The school should not be involved in
facilitating that aspect of a child's development, it's well outside the scope of education.
Anybody watch "Raising Hope" when it was on? There's a bit of a flashback story that involves the main character Jimmy going through a goth phase in high school. Jimmy would dress in black with lots of safety pins, chains, and dramatic make-up, and they wanted to be called "Drakkar Noir". Jimmy's parents were perfectly aware of this.
Now, if the parents are okay with it, and the teachers *want* to play along and call Jimmy "Drakkar Noir", fine. It's silly, but okay. Teachers shouldn't be obligated to call them "Drakkar Noir", but there's also no reason to prohibit it - it's at the teacher's discretion.
What if the parents were in the dark? What if every day Jimmy left the house as Jimmy, in jeans and t-shirt, and when they got to school, they ducked into the bathroom and changed clothes and put on make-up? What if the school was aware that Jimmy was doing this behind their parent's back?
Should the school be obligated to inform the parents? Meh, maybe not. But I'd prefer it if they did. Any time a child is adopting a completely different persona outside of their parent's knowledge, there's at least some cause for concern. That sort of division is generally indicative of a problem, and sustaining distinct identities like that is rarely healthy in the long term.
On the other hand... should the school facilitate Jimmy's change of persona? Should the school provide clothing options for them, make-up, and a space to change without their parent's knowledge? On this, I say absolutely not.
I'm fine if schools don't intervene unless there's a clear concern about the child's well being. I'm not fine with the school facilitating a division between parent and child.