> I don't know how old you are, but before the early 2000s, the only place that I ever encountered "transexuals" was in San Francisco sex clubs.

The way I remember the pre-2000s there was definitely mention of trans people in popular culture. The big difference is being trans was being treated as the punchline, or otherwise derogatory. (The first example that comes to mind is Tone-Lōc's 'Funky Cold Medina', and also that Aerosmith song https://www.songfacts.com/blog/interviews/desmond-child)