Watching the video is very interesting: Abp. Niederauer seems to have presumptively gone to bless the first drag queen in the same style that I’ve always seen Protestants blessed at wedding masses, rather than giving them communion. The queen then said something to the Abp., who then gives communion, with an expression consistent with a thought like, “well, if you say so.” He then readily hands it out to the 2nd drag queen.
There’s no telling what the drag queen told the Abp., but it sure seems that the Abp. was not in the ordinary habit of giving communion to drag queens.
There is MUCH MORE to this event than you and I are seeing. It's possible the queen went to Confession - we can't be judges. But I sense this event was a way for the gay community to test the Abp.