As far as i can tell that text is not considered canonical by Vibbhajavadin schools from which Theravada developed. I think it belongs to schools that were considered heretical by Theravada and would be among Mahayana texts.
Early texts offer little commentary but there is some. There is a story in Theravadin Vinaya of a "pandaka" monk who first asked elders to attack him, asked younger monks before asking novices to attack [a term used for sexual things, masturbation is called 'attacking with hand'] him and being refused he wen't on to have sex with lay people him and bad report spread about monks. A rule was made prohibiting pandaka ordination but the definition of a pandaka isn't clear at all to me.
same-sex sexual intercourse is not a cause for disrobing for a nun but is a disrobing offense for a monk. There are some differences here.
There are also mentions of peculiar fascination of a certain with the Buddha but he was never referred to as any terminology akin to gay or anything close and whether it would be considered gay at this point is a moot point.
It is important to note that in the beginning gay people were certainly allowed to become monks as there were little to no rules. It is also unclear whether they were allowed to ordain throughout Buddha's life.
It is also clear that they were extremely tolerant in not beating up that monk who went around soliciting novices... Iirc when he asked monks told him 'go away pandaka, what good is that..'
If anything i think pandaka is closer to sexually perverted degenerate or a maniac maybe more so than a particular orientation. It's my opinion tho.