The policy assumes that everyone will act in good faith, or will be explicit about acting in bad faith. That's a terrible assumption.
For example: if I put an unfamiliar pronoun in my profile, and someone sees it, are they obligated to refer to me that way? What if I'm just trolling? Should people be required to google my preferred pronoun and then make a value judgment on whether I'm acting in good or bad faith?
If they err on the side of assuming good faith, and I'm really just trolling, then we get an answer for all to see that includes someone falling for a troll, which reduces the value of that answer. It also normalizes trollish behavior, which is bad.
If they believe I'm acting in bad faith, and they're wrong, they could get banned from the site, which is an overreaction to what I'd expect will be a common, innocent mistake.
And that's just one example; there are plenty more in the comments.