1. They're inherently unjust and anti-equality.
2. In the case of stuff like race and gender, the law doesn't even clearly define what terms like "black" and "white" are supposed to mean. There is no scientific definition because in physical reality race doesn't exist. It's assumed everyone follows race ideology, but even if we assumed that to be true then the premise of such suits is that someone committed a thought crime. Such cases are bound to lead to wrongful convictions as well as actual discrimination going unpunished because it can't be proven. These discrimination suits are the modern day equivalent of medieval witch trials.
3. They create division and conflict. That may be an intentional feature instead of a bug though.