Sure, but not very much outside of a doctor's office or elite sex-or-gender-restricted sports, because there aren't many people who have DSD with a strong enough phenotype for "M" and "F" to really not cut it.

The only reason why right-wing politicians even bother to mention this at all is because trans advocates vocally and repeatedly pushed an attack on sex as a category as part of the defense of trans identity. If everyone had just started out with, "Sometimes the development of sexual dimorphism doesn't work out the usual way, but those people are people and need to be welcomed in society like everyone else does, in some reasonable way that works both for them and the rest of society as much as possible, and that's all we want to say on the matter," then there'd never have been much fuss.