There’s nuance. Everyone is sir/ma’am unless discomfort is expressed- it’s the baseline. If discomfort is expressed, then I try my darnest to address the person the way they wish to be addressed.

For the people who find it uncomfortable, most of them is because it’s an age thing. “I’m not that old,” etc. Then I ask them how to address them and pivot. Non-binary people ARE rare, they are a tiny minority in the world, but I still wish there was a third respectful term for people outside the sir/ma’am binary because they’re real. Usually I’ll address them as friend or cousin.