I think calling it drag story time leads to the sexual connotations that people object to and what allows it to be fox newsed.
Drag, in popular culture, leads to connotations of a burlesque style show with a lot of revealing costumes and sexual innuendo. Whereas Drag as defined by the people participating in drag culture is broader.
Really they should call this Princess story time where a person dressed up like a princess reads children a story. The gender of the person reading the story should be immaterial. Somehow if they did this I think people would be even more outraged.
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