Yeah, I understand that the terms might be derogatory, but I put them into the game with the reasoning that most people haven't heard of the term "intersex", so they would understand more when seeing terms like "futanari" or "hermaphrodite" instead. I didn't have any ill intent whatsoever.
And yeah, intersex people do exist. They are really uncommon though, (about 1.7% of the population being born with it from what I could find, feel free to fact-check me on that, though).
Anyways, thanks for enjoying the game! The next update is scheduled for the 8th of April. Stay tuned!