The reason that panic exists is because conservative news outlets have been straight up lying about trans people and trans children by framing it as a "cult" that children are being "recruited" into and referring to the act of telling a child that LGBT people exist as "grooming" to make LGBT people living their lives sound nefarious and perverse. The reason why conservative news outlets are doing this is because there is an election coming up in November 2022 and since all republicans have done for the past however many years is act like obstructionist dickbags and not accomplish anything substantial the only way to get their voters to come out in big numbers is to create a wedge issue that will drive them to the polls. And the reason they chose trans rights as a wedge issue is because a) most conservatives are already transphobic b) progress on trans rights only started picking up relatively recently c) republicans successfully got the governorship in a *generally* democratic state (Virginia) by creating a scare about "critical race theory" in schools (separate can of worms don't even get me started) so doing something similar for LGBT issues was a no-brainer. Notice that absolutely none of this involves neopronouns or xenogender people. Sure, conservatives will use those people as a punching bag to demonstrate how "crazy" trans people are, but ultimately, that bigotry and the political motivations for making it law would exist regardless of whether or not people are using xe/xim or sparklegenders.
Hell, the one known instance of xenogenders being used as a justification for anti trans legislation was that guy who argued a bill was justified because some school was putting litterboxes in the bathrooms for catgender students and guess what, THAT WAS A LIE!!! That dude heard it from a guy who heard it from a guy and THAT GUY MADE IT UP!!! People don't become transphobic because of neopronouns and xenogenders. People who already hate trans people will sometimes use neopronouns and xenogenders as a way to justify their existing bigotry, but that is NOT why they actually hold those beliefs.