More qualified people than me have commented on the racism inherent in That One Choice for Taash, so I'll keep my commentary limited to this:
It is a deeply, deeply strange narrative choice to have a scene about how Taash can be neither man nor a woman, but a third thing in between, and in the middle of it force them to choose one culture over the other, presented as a binary choice with no grey area available.
Like. Absolutely it is racist. It's also thematically contradictory and narratively bullshit.