This is about transphobes blaming trans people for something that didn't even happen. It's absurd.
The Vagina Monologues was not "cancelled" due to some type of trans outrage. The play has been criticized by feminists for many years for many reasons -- focus on experiences of wealthy white women, gender essentialism, trans-exclusivity, and even pro-child abuse sentiments.
A student theater group just decided not to do it this year. Instead, they're making their own ambitious production that will use fresher ideas and a broader range of experiences.
There is no ban on the word "vagina" on the new production or anywhere else. One anonymous blog commenter said it was banned, which is reactionary fear-mongering and not truth. The word will be used presumably many, many times in the new production. There's no reason you can't talk about vaginas without intentionally hurting people.
It's very telling when people jump to the conclusion that trans people are a threat to everyone else. It's the very definition of transphobia (fear of trans people).