This is actually why most intersex groups have been against the decision of Germany to, as of a few months ago, not register as male or female intersex babies. They fear this forced “other” legal assignation will push parents to accept surgery and hormonal treatments on their kids to make them eligible to male or female as a legal sex to avoid the stigma of a third unknown case.
I know someone australian and intersex who has to keep two passports: his regular passport with an X for gender, and another with a male designation (I don’t know if it’s also an australian passport or if he’s binational) to avoid harassment when going to some countries.