As far as where to place prisoners, I think the rational, humane approach is to make an evaluation on an individual basis. Obviously with the majority of people who are cisgender there is nothing to consider. But for the minority that isn't, there are a number of things to consider on an individual basis and such decisions do NOT fit into a mindless boilerplate one size fits all system. I'm not talking about coddling anyone. Just being rational.
The maga fascist now official government policy that transgender people don't even exist is extremely cruel and extremely stupid.