Exactly it becomes a government mandated dress code for performance. And based on gender no less.
Doing this you wind up banning Shakespeare and not just the whole “every role is played by a man” style, but no matter the casting some of his comedies contain drag.
And from there you have bio drag. There are cis women performing as queens who are indistinguishable from the cis men they perform alongside when on stage.
Now certain forms of sexually provocative dancing sure fight it out but it needs to be equally illegal for Beyoncé at the Super Bowl.
Saying drag is sexually explicit is like saying stand up comedy is sexually explicit. Yeah a lot of it is but not the stuff for kids at a library unless someone is displaying poor judgement.