Cyberpunk had the same thing, but it turned out to be a) very minimal options b) made no difference at all to story or romance c) irrelevant because without mods you couldn’t see them in game apart from in the inventory screen.
I suspect this would be the same, just a pointless feature to generate clickbait articles and maybe get a few more sales to horny coomer idiots.
Why is AI Pornifying Asian Women? (joysauce.com)
Baldur’s Gate 3 Lets You Customize Your Character’s Genitals (kotaku.com)
Larian Studios showed the option during its last Panel From Hell presentation