They might turn out gay they might not. Conforming kid might turn out straight might not. Kids a kid. Let the kid be a kid. Sexuality is an adult concept the kid doesn't need to be bothered with until they are old enough to have sex.

Kid wants to wear a dress whatever, probably just wants to dress up, doesn't mean shit. Most you can say is, other kids will make fun of you. Which is true, or was, before the schools started to go on their anti-bullying crusades to the point of hindrance of normal human development.

I've known straight adults that so drag and shit, I don't understand it but I also don't care. Do shit for adults, not for kids, doesn't matter.