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The Netherlands is removing gender altogether from its national ID cards -- https://www.livemint.com/news/world/dutch-id-cards-will-soon-omit-gender-says-minister-11593877554039.html
In a 2011 report @HRW recommended the govt to: "Explore ways to grant legal recognition to the gender identity of trans ppl whose gender identity is neither male nor female, including removing the gender marker on the documents of gender variant people." https://www.hrw.org/report/2011/09/13/controlling-bodies-denying-identities/human-rights-violations-against-trans-people
In 2018, the IE-SOGI, @victor_madrigal, said: “The notion that there is a gender norm, from which certain gender identities ‘vary’ or ‘depart’ is based on a series of preconceptions that must be challenged if all humankind is to enjoy human rights.” https://www.un.org/en/ga/search/view_doc.asp?symbol=A/73/152
As the IE-SOGI noted, the necessity of recording gender on official documents should be scrutinized --
This is in line with the Yogyakarta Principles +10: http://yogyakartaprinciples.org/wp-content/uploads/2017/11/A5_yogyakartaWEB-2.pdf
This thread could go on forever but while on the topic of how sex/gender ended up on documents in the first place, check out @SLAwrites incisive piece on how 1970s American fashion trends got us M, F, and eventually X on our passports: https://www.thedailybeast.com/how-the-rise-of-androgyny-changed-our-passports
