FAQ:What happened to the special assets genitalia?
The genitalia proxies have been removed from the official MakeHuman bundle and can now be found in the "User contributed assets" section. There is still genitalia functionality in the code, which is disabled by default without the appropriate proxies. The genitalia proxy can still be downloaded from the User contributed assets Page (http://www.makehumancommunity.org/proxies.html). To install the proxy please refer to FAQ:I downloaded a third party proxy. How do I install it?. There is also a add genitalia functionality in the unofficial MHX-2 plugin.