I think the Gender field was removed from visibility in the LMS User record with the vSaaS b2005 upgrade. I just checked our Entity Configuration > User record page in our Production instance, and it is no longer listed as a field that can be enabled for visibility. However, if the field is still mapped within your CONNECTOR configuration file for the SF User Connector, your LMS may still be receiving gender values from your BizX Employee Profile records. And if the data is being passed to your LMS, then it might be possible to expose that data through a report. If you want to stop the Gender data from BizX from getting sent to LMS, even if you can't see it, I would strongly recommend removing the mapping from your CONNECTOR configuration file. Look for this statement:
sfuser.field.mapping.data.GENDER=GENDER
and remove the GENDER value after the = sign.
I certainly understand your concern. We have more options beyond Male and Female that can be selected in our Employee Central module, but we mapped our SF User Connector to transform any value that did not match M or F to show as null in LMS. Our Gender field in the LMS was not marked as Mandatory, so we could leave it null. (It is a moot point now, though, since we cannot see the data in LMS any longer.) But if you also don't like the option to transform non-binary options to null in the LMS connector, then consider removing the mapping altogether and let the non-binary values be captured only within your HR system instead.
Good luck!
Mary Katherine
