I don't do much daz stuff, c4d here. but pushing deformation to extreme can give unwanted results.
You can try and see if you can improve on the weight map. if the weighing isn't done properly you can get results like this.
I would check the weight map first.
i am not sure in daz but in for example in c4d you can set how bones is influencing the mesh. linear, spherical, blended.
The type used will affect how the deformation will look like. not sure if daz has/does something like that.
but as said daz isn't my tool so you probably need to wait for a proper answer if you haven't figured it out.
Ps. whats wrong with a normal sized dick, why does every MC need to have it 12" long
