In Crowley's system, Khabs=Star, which is the "Inmost Light," or "God." It parallels what is often referred to as the Higher Self or True Self; what Crowley calls the True Will. The Khu Crolwey identifies as the "magical entity" or "magical garment" created by the Khabs as a vehicle for itself. In his
New Comment, he describes it as "far subtler than mind or body," but also a "veil" and therefore interrelated with mind and body.
This is basically a repackaging of an occult doctrine that says, God is within you not "out there" somewhere, but with a twist. In most versions, the spiritual or "god" part of a person is imperfect to some extent and must undergo a series of incarnations in order to attain perfection before it can return to Source. In Crowley's version, the "god" (true will) within is already perfect and always has been. All that is necessary is to wake to the fact.
Crowley's Comment on this verse clarifies further what he intends by "Every man and every woman is a star." Every person is a free agent with no responsibility to a higher spiritual Authority; it really has nothing to do with equality. Actually, there seems to me to be an underlying current of us vs. them throughout most of the BoL. He draws a distinction between the initiated and the uninitiated; every man and every woman are indeed stars, but the uninitiated is a "dark star." Presumably, the dark star can become enlightened through indoctrination into his (Crowley's) teachings.