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What possible purpose could it server to take the TFG away, let alone Tedd's own inventions and his own research? The TFG is Uryuom tech. That Uryuom couple explained to Tedd that it was legal on Earth (unlike on their home planet, where it was banned). Besides, his watches don't work anywhere else on Earth and they will no longer work at all after Sarah helps deplete the dammed-up magic. As for all the notes and stuff he's written down, that will also likely be half worthless after magic changes. Then there's the fact that Tedd got permission to work on the TFG from his dad, who has a lot of friends in high places and whom everyone in the supernatural world seems to know. His dad has a lot of pull. They obviously do not consider Tedd a security risk. His dad is keeping a close eye on Tedd and his friends. And as far as the DGB knows, Tedd hasn't directly caused much in the way of shenanigans. He did transform Elliot in the heat of a moment and, later, snuck into a facility to use the Bewitching Diamond. But that's about it. There was not a lot of (direct) fallout from that and he's been behaving since then. Also, if magic did change suddenly and drastically, they'd be stupid to shut down independent researchers like Tedd. Instead, they should be nice to him and ask him to help them figure out how magic changed. Of course the government would have their own researchers for this. But this is Tedd. He's a Seer. He has an innate ability to know how magic works. It's like he's a savant with magic. He can probably see Uryuom tech like he sees magic, allowing him a greater than usual understanding. Ever heard the phrase, "It's easier to catch flies with honey than with vinegar?" Maybe they ought to play nice and ask him to work for them after he graduates? Or, you know, they could just ask him about his research.

There is a possible solution. Tedd could attended a university, become a doctor specializing in gender reassignment, move to a country with lax laws on practicing medicine, and open up a private clinic. (Apparently, since the surgery is so expensive, a number of people visit Thailand or Mexico to get it done there, since it's much more affordable. It's called "Transgender Tourism".) Assuming he files all the proper paperwork, he could set up appointments with TG patients and secretly use his innate ability (or a wand with a permanent effect) with no undue problems or complications. In theory, it could all be legal, above board, and out in the open. He could boast of his "new technique" having less risk and leaving virtually no scarring and less pain and complications. It wouldn't even be lying. And if he was more interested in helping as many people as possible, he wouldn't even have to charge an arm and a leg. (It wouldn't cost him as much, anyway, as he would not need to hire a full operating team. Though, he'd probably need an anesthesiologist if he wants to keep it secret from patients.) Even if limited to word-of-mouth, people would flock to his clinic. One of the few obstacles I can think of is how he would explain that his now female patients can get pregnant. That'd be a tough one. Though, perhaps he could make that impossible? Or, maybe he could claim his technique involves gene manipulation? Granted, all this would be a very tall order. I would suspect that Tedd has other plans for his life, like more mad sciencing of magic. (But then, isn't that more of a hobby than an actual job? I don't think it has much career potential.) However, I think it's safe to assume that Tedd plans to attend college. Considering how set Tedd was on making the world a better place by giving everyone access to magic, he seems to have quite the altruistic streak. Now that dream is dead. But it was only recently that he learned that he was gender-fluid - that there is term for this and that this is a thing - and that there are other people like him. So, would it really be far-fetched for him to make something like this his new goal in life? Then again, considering what Pandora just learned about Tedd being a Seer, his destiny may (or may not) preclude him from having a job like that. He may yet end up working for the government in some magic capacity, similar to his father.