My experience with the show is fairly limited (basically just Sonichu and the occasional "Jessie gets banged by a bulbasaur" comic) but I was under the impression that James had always been a ballbusting ladyboy.
Back in the 1970s there was a magazine for gay Japan men called Barazoku that means rose tribes. When you see a male anime character that gets associated with roses a lot, the anime's usually hinting that he's gay. On the other hand Moonlight Knight uses roses as a weapon but they're hinting he's gay because he's always saving Sailor Moon and he's romantically linked to her. I think it's more like he uses the roses he would give to her as a weapon to protect her.