Flippin' 'eck Rhi, what sort of nursery school did you go to? It sounds terrifying.
Can't say i ever came across anything like that.
I'm all for kids growing up in a tolerant environment and learning that people are individuals don't all fit into set boxes - I was brought up like that (my mum's Quaker influence and no she didn't push any Quaker faith onto me and sis
but the ethos was strong), but I doubt I'd have realised a man in drag was reading to me at the age of three. I'd have just listened to the story if it was good. As I got older & went to a couple of pantos I did know that fairy godmothers and the Queen in Cinders were really men & didn't think there was anything amiss about that, nor Jack who climbed the beanstalk or Prince Charming being a young woman.