From what I seen there's literally not a difference. Mostly everyone has tits and a dick.
So what makes someone a male or a female in this game, and is having children gonna be apart of this game?
You can get pregnant there being a male, it's a mechanic...
I actually had a theory on what's happening in this world, but to be short, the pregnancy works here the same way it works in reality. Most of characters (except Nagas) don't have a hole needed to be considered female. So, they're acting like women because they look like women. But you don't play the game with dickgirls if you don't want to see the girls that actually have dicks, right?
Dick girls is one of the reasons why I play it, but I noticed there's an offspring section when you view relationships and since almost everyone is literally a dick girl. It made me wonder what's the difference between male and female? and if it is just how they act then can anyone produce children and fertilize children? I also noticed how confused the character when you talk to a new a character for the first time. E.G. Trudy.
There are three futa characters who may lay eggs, which they can produce. Others are probably just men with tits. In fact, you can create Hiro as a man with tits.
Tits and dressing up seem to make you into a girl in this world. Trudy didn't have them, which probably led to a confusion. Another companion, Kylira, was once called a girl as he looks like one and acts like one.
Unless I'm remembering wrong, there ARE females in this world, we just don't interact with many of them. The Brothel Madame, for instance, doesn't have a penis, and I don't think the nun in the church has one either. Also the angel at the Altar location, but being that she's an angel that's not exactly the same. One of them 2 vampire sisters (the thicker one) is full female as well, with a vagina and everything: in the threesome scene with them you get sandwiched between the 2 of them.