The fascinating thing about this particular patch note is that it implies the game engine is fully rendering your character's penis at all times, not just when you take your pants off.
I'd say it was because they were accurately rendering the bulge, but if they're clipping through, that clearly can't be the case either.
Even if they wanted the bulges to be meticulously accurate, the sensible approach would have been to include a hidden penis size slider in the mesh for the trousers. That way, you could render the trousers with a bulge of appropriate dimensions baked into the mesh and simply switch the penis off whenever it's fully covered; it'd be hugely computationally cheaper than doing fabric simulation to determine the bulge dimensions dynamically, you'd save on running needless penis physics calculations whose results will never be seen by the player, and there'd be no risk of penis clipping. The way they currently seem to be doing it is just sloppy penis optimisation.
