I brought up Cyberpunk precisely because it's like that there. You see yourself naked in the menu, but in the game, there's no use for it. So, why go through the effort during development to include that?
BG3 goes one step further here, but personally, I find it unnecessary if you don't also utilize corresponding cutscenes. Then, I don't need the option during character creation either.
I don't know how much effort it takes to program the genitalia, but if it's not needed, it's unnecessary. Every second spent on it is then wasted time that could have been used elsewhere!