No, Tennessee has banned drag performances, period, with wording that makes it very easy to claim that any trans person in a public place violates it. (Easy enough that it seems likely to me that that's the intent.)
Because it seems pretty explicit that it doesn't apply in places where only adults are allowed. And how could a specification of people "who provide entertainment that appeals to a prurient interest" apply to any trans person in a public place?
The problem is that it's so broad that it can easily be abused. Many drag performances are not sexual (e.g. drag queen story time). Even those who are sexual are generally no more so than your average pop concert. They are a far cry from something like pornography or strip clubs.
> it doesn't apply in places where only adults are allowed
Like...in public.
Or in many other places where someone in drag might be.
Or in most places that a trans person might be.
Drag performances are not inherently sexual, and are not inherently intended only for adults. The idea that they must be sexual in nature is part of the propaganda being spread by conservatives to try to invoke the "think of the children" effect.
There are a number of places that have "drag reading times" at libraries that are very popular, just as a quick example.
