The redhead in the third picture in the OP is the MC's niece (his brother's daughter) and woman in the fourth picture is the MC's sister. I honestly can't remember what they are in the unpatched version; I think the MC and his siblings are just... childhood friends or something? Also makes the family that the MC works for an actual family.
As for if it's intended... heck if I know. It's not like some other patches where it basically just turns on a variable that shows different dialogue that's already in the script; it's a whole replacement of all the script files. I think it makes more sense with incest, and it would be a lot of work if it were just a fan patch, but beyond that I guess you'd just have to ask Parmenides where they get the patch from.
