I watch that show its actually pretty safe outside of that one weird episode where bill hits rock bottom and thinks he's his exwife though I don't really think of that one as transphonic per se
There's one episode with a drag queen, not trans. It's pretty positive! She thinks Peggy is also a drag queen and they become best friends. It ends that way too.
Stuff like that bothers me less when it’s a character like Bill, who’s established as a sad loser who’s not too bright. The joke isn’t homosexuality; the joke is Bill doing something that any sensible person would know is a bad idea.
It's been a while, but I felt like the episode poked fun at the stereotype of the clownishly flamboyant gay man and the belief that gay = fashionable. I think Queer Eye was big around that time and sort of pushed that idea, too. So yeah, not really making fun of gay people as much as making fun of popular culture and the sort of "gay chasers", I guess.