Is the appendage affixed with Velcro?
Its an X-rated version of Mr. Potato Head.
I wondered how they did this, too. If it’s like all other dolls, there is nothing there in the crotch. Being a “transgender” doll, though, do they have to put a bump or something to indicate that? But if they do that, they admit that the doll is really a male. It gets really tricky when one starts denying reality.