Quote - So how does DAZ Deal with genitalia & morphs ?

The genitals for Genesis, G2F and G2M are geografts. That means the models replace part of the hip polygons when loaded. Otherwise the model will behave like any conforming figure and follow the morphs dialed on the Genesis(2) figure as fas as possible.  For extreme morphs it is best to add shape specfic morphs to the genital figure to optimize them for the shape. Just like some clothes have specific genesis morphs built-in to optimize fit for some shapes.

So essentially the genital figurtes act like conforming figures, but replace part of the figure mesh (they can even have their own rigging).

TD