If I had one position, 10 applicants, and one was a man dressed like a woman, are you saying that I have no discretion in California regarding hiring the best qualified? That I must hire the cross-dresser whether best qualified or not out of the 10?
In that case, I guess all will show up cross-dressed, because that's a crazy rule.
You certainly have “discretion” to hire the most qualified person but if you don’t hire the cross dresser and you hire a normal Heterosexual white guy, then the cross dresser will probably sue you for discrimination and then you will have to prove that the guy you hired was more qualified. Good luck with that.