TL;DR: IANAL, however, the document this bill references to define what content is harmful to children directly, verbatim defines sexual conduct as including "homosexuality" broadly
Okay so this bill is SB394 (linked above obviously) and it opens with the following
Any commercial entity that knowingly shares or
distributes material that is harmful to minors on a website and such
material appears on 25% or more of the webpages viewed on such website
in any calendar month, or that knowingly hosts such website (...)
It carries on to later define "harmful to minors" in section h-3 as the following:
(3) "Harmful to minors" means the same as defined in K.S.A. 21-6402, and amendments thereto.
If we go look at K.S.A. 21-6402 we can find that it is regarding "Promotion to minors of material harmful to minors" and goes on to declare in section d-2 that "harmful to minors" refers to several things including sexual conduct (I'm omitting this full quote for brevity, you can find it in the linked document).
Now if we look a little further down, we can see that Kansas currently defines sexual content as defined in section d-8:
(8) "sexual conduct" means acts of masturbation, homosexuality, sexual intercourse or physical contact with a person's clothed or unclothed genitals or pubic area or buttocks or with a human female's breast; and (...)
Considering all this, i think extremely reasonable to believe that this could outlaw LGBTQ+ content from being displayed openly online within Kansas
Edit: fixed sexual conduct/content mixups