Lack of education and knowledge I'm guessing. From what I've seen (including lived in one) the issue is that they are just taking a really lazy approach, basically by following what is hot in the US/UK and introducing what they think is "progressive" based on what they're told and without thinking about it.

Some countries like Iceland also have low populations, thus their intersex numbers are going to be low, and maybe they think that there's just so few of them it's not an issue. But then again, low population also equals low trans population, yet they seem enthusiastic about validating "nonbinary" and trans people (Which, let's be honest, are going to make up a TINY few and are most likely going to be immigrants from the US/UK)

It's performative progressiveness when actually I think they're apathetic and only care about making themselves look good. And look at how profitable and trendy trans is - you get money from surgeries, money from pride merch, money from LGBT+ organizations and events, and probably money from things like "changing your legal sex" too. Intersex people? We don't like SRS, we don't have parades, we don't have merch. Giving a shit about our rights simply isn't profitable.