While I do enjoy NanoFate futanari, I kind of prefer the sort where penises are explicitly magically summoned. The "Fate just kinda has one" method heaps more angst onto her status as an artificially created being, and while I enjoy explorations of that, genital dysphoria isn't something to lightly lump in there. (Fate's particular manifestation of dysphoria would be a conflict between actually feeling comfortable in her body and feeling like her body and that comfort are things she's stolen from Alicia.).
Then again, that's kind of overthinking pure smut.