Are we assuming too many children are trans?

Gender non-conformity is not uncommon in children. I exhibited it at a young age. Some studies suggest that it is an indication that a child will grow up to be homosexual or bisexual. The UK is apparently aware of this and changing some of their practices around “gender-affirming care”:

The proposals say that the new clinical approach will for younger children “reflect evidence that in most cases gender incongruence does not persist into adolescence” and doctors should be mindful this might be a “transient phase”.

Instead of encouraging transition, medics should take “a watchful approach” to see how a young person’s conditions develop, the plans state.

This is sort of a follow-up to my previous question about the number of trans youth and people seeking gender-affirming care skyrocketing in recent years. Do you think trans activists are too gung ho and that this approach from the UK is fair? Should we be more cautious about “socially transitioning” gender non-conforming children? Should we maybe expand the definitions of certain gender norms so we don’t immediately assume a child who doesn’t fit them must desire to be the other gender?