The IOC included exceptions for certain DSDs.

Please read the linked articles first before jumping to Wikipedia to try to counter them. The decision is more nuanced than you assume

The Yahoo article linked says that exceptions will be made for people with conditions like that:

“Athletes diagnosed with Complete Androgen Insensitivity Syndrome (CAIS) ‘or other rare differences/disorders in sex development (DSDs), who do not benefit from the anabolic and/or performance-enhancing effects of testosterone’ may still be allowed to participate in the women’s category.”

In a word: so? Intersex people exist, you have to draw the line somewhere, the presence of SRY seems as good as any.

The test is used for initial screening only.

Presence of SRY in an athlete registered as female means further tests must be undertaken, with permission of the athlete, to determine eligibility.

Absence of SRY means the screening is passed and the athlete is eligible to compete.