[kazooie]

I think it really depends on the person. For some it is definitely stemming from something akin to autogyniphelia where sexuality is largely dependent on the idea of being female. For a lot of people who feel that way, mundane tasks and simply passing as a woman in regular situations can be part of the fantasy.

There are definitely people who are transgender in that they belong in a body opposite to their AGAB and there are also definitely people who have varying degrees of a sexual desire to be a woman (which may or may not seep into their lives outside of sex-related stuff)