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Regan and Luna's dad definitely doesn't know how to deal with diversity when it comes to his family—or to society. He wants to keep things at the status quo all the time and doesn't understand why his family members want to be different:
I caught Dad rolling his eyes. He wasn't crazy about Mom's job. Specifically, her elevating her own status from Wife and Mother to More Significant Other. Not that he was sexist or anything, just boring and conventional. (2.34)
He just wants his family to be the cookie-cutter traditional family—he wants his wife to stop working, his daughter to help out with cooking around the house, and his son to build cars with him. When these ideas are challenged (newsflash—everyone wants something different), he doesn't know how to deal with it, and he even reacts with near violence when Luna comes out:
I imagined the crushing blow to Luna's face, lethal in its intent, in its execution. Dad was big, strong. And more angry than I remembered him ever being. (24.51)
He reacts with anger because he doesn't understand how Liam could possibly be transgender, or how his wife could enjoy her work so much.