All Might would probably be very supportive. He's always been about the spirit of heroism, not gender. He'd encourage Izuku (as a girl) to keep training hard. Bakugo might initially be shocked and then try to act all tough, but deep down he might be a bit confused about his feelings towards her. Ochaco would be excited to have another girl around and might become even closer friends with Izuku.
Some characters might be very surprised at first. For example, Asuna could be initially shocked but then become very protective of Kirito as a girl. Klein might make some teasing remarks but still be a good friend. And the villains might see her as an easier target or a new kind of threat depending on how they view female characters in general.
Sasuke would be extremely suspicious. He has always seen Naruto as his rival and a symbol of the village's hope. If Naruto starts acting like Pein, Sasuke would think it's some kind of trick at first. He might even be ready to fight Naruto to figure out what's really going on.
Kakashi would likely be amused by the whole situation. He might give Naruto some tips on how to blend in better as a girl, using his own knowledge of disguise techniques. Iruka would be more concerned about the reasons behind Naruto dressing as a girl and would make sure Naruto is comfortable with it. He would also be there to support Naruto if any of the other villagers had a negative reaction.
Some of the male characters might be a bit flustered around Naruto as a girl. For example, Kiba might act differently, not quite sure how to interact with her in this new form. Hinata, on the other hand, could become even more shy. She already had a crush on Naruto as a boy, and now with Naruto as a girl, her feelings could be even more complex. The Akatsuki members, if they were to encounter Naruto in her new form, might underestimate her at first. But Naruto, with her indomitable spirit, would soon show them that she's still a force to be reckoned with, regardless of gender. And the reactions of the characters would not only be about how they see Naruto, but also how Naruto's new form affects the power dynamics and relationships within the Naruto universe.
The other characters' reactions would be diverse. Bakugo might initially be very confused and maybe even mock Midoriya a bit, but deep down he'd still see her as a rival. Uraraka would probably be very empathetic and quickly become a good friend to Midoriya in her new form, helping her with things like getting used to the new body. And All Might would be very supportive, seeing it as just another obstacle Midoriya has to overcome in her journey to become a great hero.
Sakura would be heartbroken. She's always had feelings for Naruto, and seeing him insane would be a huge shock. She'd likely try to use her medical skills to find a cure for whatever is ailing Naruto's mind. She might also try to get help from Tsunade, hoping that the former Hokage's knowledge could save Naruto.
Sasuke might be extremely suspicious. He has a long - standing relationship with Orochimaru, and this sudden change would make him wonder if it's a new trick. He would keep a close eye on her to see if she's still the same threat.
The other characters' reactions could vary widely. His close friends in the fanfic might be in a state of panic, crying and not knowing what to do. Enemies, on the other hand, might see it as an opportunity to take advantage, or they could also be secretly worried depending on the complexity of their relationships. And there could be those characters who are just bystanders, shocked at first and then trying to figure out what happened.
Eventually, he might come to accept it in a grudging way. If Izuku is wearing the clothes for a good reason, like in a team - up situation where it's part of a strategy, Bakugou might tolerate it. But he'll still probably make some snarky comments about how Izuku better not ruin his clothes.
In the 'izuku becomes a girl fanfic', perhaps the plot involves Izuku adjusting to her new physical form. She might struggle with things like different clothing styles and how society views girls in the hero world. Also, her relationship with other characters could change. Her friendship with Ochaco might become more complex as they now have more in common as girls. And Bakugo might react in a really interesting way, either being more protective or even more competitive towards her.