I really think E2 is a boy who just likes typically "girl" things, clothing, etc. - and also thrives on the attention! If you were a kid, why WOULDN'T you lean into the thing that makes your parents pay attention to you??
It also comes back to kids mirroring the content they see. I remember desperately wanting to be Lindsay Lohan as a pre-teen cus I watched Mean Girls 400 times on repeat. You can see that in E2, hence the "drag queen"-esque characteristics.
I feel sorry for E2, and repulsed by Jonathon and Anna for using and exposing their children like they do.