Alright, here we go. A bit of short input on what I've seen of Chapter 2 so far. For starters, when talking about the prime witch and her activation of other witches doing sex, it was asked if she was a lesbian, and the reply came that it could've been some sort of orgie as well. I would recommend changing the 'lesbian' to say 'She was attracted to women?' or something similar. Just outright assuming she was lesbian because she apparently had sex with women, seems sorta reductive and sorta erases bi and pan sexualities. Both of whom exist, and both of whom are as valid as gay women.
Secondly, in regards to Maliyah and her hard-on. Trans women, even those on hormones, can in most cases still get hard. While it for some can be hard, pun intended, to stay hard once you're there, the initial hard-on is very much possible and as such it feels a little silly that a hard-on would be an instant giveaway for the magic being behind it. While getting off of hormones is a common practice in porn, it's primarily for the sake of the, well lets be frank here, cum. That's usually what it boils down to, since the primarily male audience wants to see us come, typically as a result of us being on the receiving end, which isn't as common once on hormones as we produce less cum. While it does help with staying hard, there's plenty of trans women who do that just fine without quitting hormones. For most of us, the saying goes "Use it or lose it" as in the more frequently we get hard, the easier it is for us to maintain that ability even while on hormones. That's the whole reason the biologically male body gets random boners, since it's the body's way to maintain the elasticity in the skin of the dick required for the ability to get and stay hard. But once on hormones, the natural boners one gets throughout the day goes away, even when sleeping, hence the skin doesn't retain that elasticity unless we actively make sure to get hard enough times a day to maintain it. And as someone who works in porn, I'm sure Maliyah would be experiencing enough boners to make that happen.
Ultimately every trans woman experiences something different, so it isn't outside of the realm of possibility that Maliyah to be in the situation she is in, so I'll let that remain up to you. I just figured I'd share some information about trans women's bodies, and let you do with that information as you wanted. Ultimately she's your character after all.
The dick, believe it or not, doesn't make it a not lesbian game. So the whole "for now mostly lesbian game" is wildly out of line. Lesbian sex is two women having sex, and a trans woman is a woman, hence any sex they have with another woman is lesbian sex. And while it's true that some lesbian women aren't at all interested in a dick, even if it's on a woman's body, some lesbians do enjoy that or aren't bothered by that and the sex they have isn't any less lesbian because of it. Saying what you're saying is wildly transphobic, hell it's even homophobia aimed at lesbian women as well for a double whammy, even if it wasn't intended to come across that way. Not only are you reducing trans women to not being women, but you're also implying that any cis/'real' lesbian who has sex with them is in fact not a lesbian, which isn't true at all.