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There's items for that in the shop.

Ego increases your genitalia size. You increase it by defeating enemies.

Broken sword is worth it if you want the exp boost. stats for it don't matter since you can get to a point where your character does a crazy amount of damage, especially when you're using the cracked essence to help with growth during combat. I've been maining the broken sword and cracked essence ever since I got them.

The only thing that really matters for weapons is the skills, and it's entirely dependent on the build you want. With the broken sword's skills, you can both give or take away from your stats for the fight. It's basically a "do I want to be stronger or weaker for this fight" kinda thing.

I've seen it mostly drop in the procedurally generated dungeons like the Sewers, the forest(?) dungeon on the other side of the wall, and the ruins dungeon on the other side of the gorge that leads to the caves, though that was in a previous update. Current one(the patreon one) seems to have them spawning at a much lower rate.

How did you do the dupe bug?

Where can I get a steady amount of ability crystals in the game? Also, it seems that chests are broken and have a chance not to give anything upon searching them. This includes chests that require keys to open. Please fix.

Try entering a dungeon or building and then exiting out. Sometimes the game is weird and won't allow the option to buy and sell stuff from the Smith unless you do that.

I hear people talking about an ego growth potion, but I've no idea where it's located. Where do you find the ego growth potion?

The other one shows up past the locked gate.

Assuming you're talking about the levelup menu, that's only for customizing their stats, not their appearance.

The shrinking back to normal feature only gives back the points you earned from levels, not the ones you get from essences.