For me, this post is problematic and even a bit offensive.
The whole "I don't want to hang out with TG who look like men in dresses" smacks a little bit of internalised transphobia and shame. I have plenty of friends who don't pass, and I'm not ashamed to share their company. Those people are not men in dresses. They are women. Our ultimate human right is the possession of our own identity. The suggestion that those people cannot define their identity for themselves necessarily infringes that right. It is the height of paternalistic arrogance to tell another person what their gender shall be, as it is to tell them what their sexual orientation shall be.
I care far more about who my friends are as a PERSON than what they look like. I don't care if you are trans/cis/NB, gay/straight/bi, or male/female/other. I don't care if you are stealth/out. I care that you respect and value other people. I care that you are a good listener, are empathetic, and compassionate.
If your friends only care about you whilst you fit into the binary of male or female, then those friends are pretty shallow people.
I pass almost 100% of the time, but I went through my fair share of being visibly between genders; that stage when people would call me 'maam' and 'sir', often in the same sentence. When children asked me to my face whether I was a boy or a girl. I wasn't particularly ashamed of it, and it wasn't really a big deal. If people misgendered me, I'd politely correct them with a smile, and we all moved on. I opened told people I'm in the process of changing gender when they looked at me befuddled. I'm a corporate lawyer, and when I changed my name at work, I received nothing but respect, a few hugs, and pile of unfinished work from my break.
Passing DID change the way the world treats me though. Passing gave me a deep insight into other women's experiences. It gave me a first hand lesson in male privilege, misogyny, and the objectification of women. Confiding in other women about those experiences, and listening to their own, allowed me to bond with other women. Passing allows me to live AMONGST other women.
But none of those experiences make me a woman. Passing does not make me a woman. Wearing a dress does not make me a woman. The only thing that makes me a woman is when I tell you that I am one.
If you don't want to transition, that's totally fine. But the worst thing for me would be to go through my whole life without letting the people who love me get to know the REAL me - to know the insecurities, feelings and vulnerabilities that are part of my identity. Dying without ever having been honest with the people who love me would have been a huge mistake. I would much rather have lived as an out and unpassable transwoman. And most of my unpassable trans friends would have said the same.