Yeah, this is exactly it. So sad that the mere existence of this debate is always dismissed as trans hate. When it's just about the recognition of simple biological facts.
Weight classes still don't really work unfortunately. At least not with regards strength. Olympic weightlifting, for example, is separated by weight classes and sex. But if you compare male and female weight lifters of similar weight classes the males are stronger in every category of lift.
It's not just about muscle mass, though that is obviously a factor, it's things like skeletal alignment and lever length and proportional hand size (relevant to grip strength).
Who knows, hopefully we'll arrive at a point one day where we can have a sane conversation about this stuff.