A: Hi "N", The Craft doesn't have any kind of restrictions in terms of gender, gender identity, Gay, Bi, Straight, Transgender, Cross Dresser, what have you. It is mostly a personal experience of divinity, so you have to take that up with the divine yourself.
But I think it comes down to the Witches' Rede, "An ye harm none, do what ye will." If someone's choice of clothing or again, 'what have you' causes no harm, then so be it. It's not like there's a Witch Police that's going to pull someone over for what they are wearing in circle. It doesn't work like that. It is about personal individual expression in The Craft, but make sure you harm none, self included, as you go.
Besides, the Gods know your Spirit more than your form.
I hope this helps,
Rev. Mark A. Lyons