Very true, but remember the "good guys" in this story are religious people too. The people running the school and flying the flags are Catholics, and they represent the majority of Catholics in the United States. Or, I should stress, a majority of Catholic lay people in the United States, who are slightly more likely than the general American public to support LGBTQ equality.

The hierarchy are a different story. Catholic priests and bishops are selected and trained in a way that makes homo/transphobia pretty much inevitable, and bishops are highly unlikely to care what lay people think or to take their views into account.

This is very different from, say, the Southern Baptist world where homophobia and transphobia are strong and concentrated in the pews, and where leadership reflects that rather than directs it.