No, I don't think so. It means that people can't be discriminated against because of how other people perceive them.

It's long been established that some people are discriminated against because others believe them to be a certain race, ethnicity, sex, religion, national origin etc when that's not actually true - and that such discrimination is just as illegal as it would be if the other person did indeed have the protected characteristic erroneously attributed to them. As when, for example, anti-Semites might discriminate against a gentile they think "looks like a Jew" or "has a Jewish NY accent" or has political views they associate with "commie Jews." Or when some people with anti-black animus might discriminate against persons who are not black but who in their opinion for "sound black," "act black," "dress black" or have "black hair." [Apologies for the offensive examples, but it's hard to illustrate this without citing the objectionable stereotypes & slurs that come into play.]

This reading of the law also prevents people from being excluded from affirmative action programs for not fitting other people's stereotypical views of what people with certain protected characteristics are like. For example, when a person of African American heritage is seen by others as "not black enough" or "too white" to be eligible for a race-based affirmative action program, or a woman is regarded as too "manly" or "mannish" to meet the criteria for programs meant to benefit women.