I find labeling it anatomically correct inappropriate.
Why? What would be more appropriate? Also, how would you explain it to a child?
“Sex assignment at birth usually aligns with a child’s anatomical sex and phenotype.” This isn’t a doll with non-existent or ambiguous genitalia. Would “anatomically accurate” be appropriate? Either way, labeling its physical characteristics as anatomically correct (matches sex assignment at birth as a girl with a vagina) isn’t the same as assigning it with a gender identity.
I find it inappropriate that you assume those infants identify as Reborn Avatars or as a deer kid. You should wake them up and ask them. 
I find it inappropriate to suggest ever waking up a newborn. Are you insane? THEY JUST WENT TO SLEEP LET US GET SOME REST MAN!
People love to pretend to be offended. -Matt Groening
I learned my lesson once and lost a finger for it. Won’t be making that again. I enjoy my eleven fingers!