This is so stupid. How would they even enforce it? Are they going to check everyone's chromosomes at each meeting?
Lots of trans women pass, and lots of cis lesbians can look a bit manly, so I can't imagine any practical way to enforce it. And a rule without enforcement is pointless.
"The Victorian-based LAG says it subscribes to the philosophy of lesbian feminism and does not believe humans can change sex.".
Nobody's suggesting people can change their biological sex. But gender is a social construct, separate from sex. That's why it's literally called transgender.