It's more of a question for someone who is involved in the game. A lot of game devs are registered here. So if someone from the DEV team is here they might be able to answer that question.
I think with the futa/trans tag the main draw for the majority of those characters in these games is the fact that they still have a penis as an added fetish, whereas having sex reassignment surgery would be purely a story addition unless they made extremely detailed/realistic models with numerous closeups to show it off.
I also think based on the success with Lyssa from Fetish Locator and her popularity with fans Josie is very likely to have a penis if you make the decision for her to be transgender.
On a side note do you guys think she'll be hung like Lyssa or on the smaller side like a lot of non-amazonian trans characters in games?
Personally I'm hoping she's even more hung than Lyssa. I really like her character design along with most of the ladies actually, and something about the intelligent, sexy, mature, responsible lady with a huge surprise and the capacity for great naughtiness ticks a lot of boxes for me. She's even studying medicine so she could totally be a sugar mama, or even maybe a killer.