Many transgendered people stop short of the genital surgery.They live their lives as B gender with genitals the genitals of C gender.
Thus there is a lack of serious medical need.
I agree that the states claim of targeting by other prisoners is silly, once he/she lacks a penis there is no reason he/she cannot be housed with women.
Finally, I have little sympathy for murderers, he/she has to live with male genitalia, he/she should have thought about the consequences before killing his/her wife.