I saw someone say that Mr. Potato Head has always been "transgendered" because kids got both Mr. and Mrs. Potato Head and swapped out the parts between them.
No.
First of all, "transgender" is not a verb. You cannot transgender somebody. They cannot transgender themselves. "Transgender" is an adjective to describe someone who was assigned a gender at (or before) birth that doesn't match their true gender.
"Gender," on the other hand, can be a verb. As in, you can gender someone or something when you assign a gender to it. For example, calling an anthropomorphized potato "Mr." genders it as male. Calling it "Mrs." genders it as female.
And that in itself isn't a problem. I don't know exactly why Hasbro decided to make a big deal out of "Potato Head," especially since it apparently still comes in "Mr." and "Mrs." but those titles are just....deprioritized on the box, or something.
But I do know that if you wouldn't have screamed about the toy being called just "Potato Head" from the beginning, even without any gendered trappings to add to it at all, you wouldn't be screaming about any of this right now. So just knock it off, snowflakes.