Really depends on the sport. In non-professional fencing and HEMA, practice tends to be coed. Men and women tend to perform equivalently - really height is the biggest "biological advantage". More reach means more ability to hit an opponent before they hit you, and this goes the same for men and women. Sure, men can accelerate a bit faster and tend to be taller, women can plant their feet a little wider and tend to be more balanced and flexible - but these are just averages. Individual people vary wildly because biology doesn't give a shit about the categories we create to describe it. And strategy can make up for a lot of those things in ways that you really just can't with height discrepancies. We had to give our club's tallest member a shorter axe just to make up for the reach advantage when she fought people she stood a head above.
Dividing strictly based on AGAB is not an even playing field and I feel trans athletes only draw attention to what's already a significant problem in competitive sports. And once you get to a professional level, I understand there's more nuance, but a vast, vast majority of athletes are not professional and the issue is blown far out of proportion for them. Anyone pushing to enforce divisions in kids' sports via genital inspections has lost their goddamn minds.