Okay, let's look at that for a moment.
We have a situation where a serial killer is using his position of power to drag multiple women to his palace every few days, chooses one for himself to rape and then kill, and gives the other two to his lackeys. While it isn't specified that the other women die, at the very least they end up victims of horrific crimes against them.
Our protagonist, Cloud, wants to go in there to save Tifa, his childhood friend. However, he can't get past the guards. His new friend, Aerith, comes up with a means by which he is dressed up as a woman - essentially putting him in disguise. It works, and the fact that our serial killer... is an idiot? the disguise works and Cloud gets chosen by the killer, while Tifa and Aerith show up and rescue him.
Cloud does not play up being a girl. He is there in disguise, he's uncomfortable with how he's dressed, and it's about doing a job. That's all. There was no real humor to the scene - at least to me. Is this transmisogyny? Or is it "the protagonist goes in disguise to get into the villain's lair to rescue his friend"? (It can be both, mind you.)
If there is transmisogyny at play here, it's on the part of the authors of the game - and most likely of the original game. Now, not all transgender people are the same. I'm a transwoman and didn't find a problem with the scene, but I also chose to use mods to change the dynamic so it's "this woman hates dressing all girly but has to so to get into the villain's lair." And that was my choice.
Now, you look at this and see transmisogyny. You don't see transmisogyny with Link and sneaking into Gerudo Town... but someone else may see it as such despite the fact Link has an exception for being Link - he's still sneaking into Gerudo Town dressed as a woman.
(And again, a lot of folks see the characters in the Legend of Zelda games as gender-fluid. We had Zelda as a man in one game (Ocarina of Time). Officially she was just disguised, but there is still enough fans out there who just see the entire LoZ populace as genderfluid that even I've heard about it and I've not played the games.)
This doesn't diminish or dismiss your feelings that what we see in FF7 is transmisogynistic. And hopefully in the future this whole trope can eventually vanish - either because we as people realize that clothes have no gender and a man in a dress is just a man in a dress and is not "inherently funny" or the like... or because people just stop using it as a source of "humor" in games and stories.
(As an aside, it's also why I don't like humor in general - it seems far too many jokes are at the expense of people, even if the person in question is the comedian in question. Sorry if I don't want to laugh at other people's pain.)
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