It is, that horse face is fucking the female mom with his horse dick (You just don't see it, YET) and makes fun of MC for being smaller than him.
Thats why futa/trans/whatever have no place in this kind of games, because they'll either fuck the girls and cuck the mc, or they fuck the mc in the ass in a more literal way. It's like this character belongs to another game because most girls are hot but then you look at this and... yikes. And her looks are not even the issue, the main problem is the she/he is fucking the mom. So even if you can avoid her, she will still be fucking the mom.