Previously you needed to have dysphoria to be transgender, and a lot of people were talking about how urgent it was that trans people needed surgery because this was a condition (of being in the wrong body) that affected their mental health.

Yes, there's a bit of history here - you're referring to homosexual transexuals here (male-attracted trans women, known in friendly circles as the trans-med community, and as "truscum" in anti-dysphoria trans circles), who are acknowledged by one prominent school of sexologist thought (i.e. Blanchard, J.M. Bailey, et al.) as the "true" cases of dysphoria in males .

Then the terminology was purposefully obfuscated by activists to merge male transvestism (a paraphilia in which dysphoria is absent, hence the adage that "its a fetish" in a majority of these cases) as an equivalent condition to actual medical dysphoria, using the transmedical/transsexual community as essentially a Trojan Horse to push for wider public acceptance.

tl;dr - members of the trans community arguing for the pro-dysphoria, pro-medical-gatekeeping side are those with the medical condition, formerly known as transsexual, who seek SRS (and frankly ought to be supported); the anti-dysphoria, anti-medical-gatekeeping community as not "trans" in the traditional, medically-accepted sense but rather fetishists (autogynephilic heterosexual males, i.e. "fucking transbians") who wish to live this way publicly for reasons I won't detail here.