It may no longer be a binary choice, but if your input is 'woman' and the tool indicates a 90%+ chance of the result being male, then your tool is crap.
Not at all - in fact it's a sure sign that the AI is approaching sentience. It's seen enough shit on the internet to develop a healthy human level of cynicism, in that it knows that someone with a handle of 'dirty_spanky_slut' or 'hot_luv_gurrl' is most definitely not female...