"she" is very much a dude. lizard penises do not come outside the body unless aroused. you can see his dick inside his slit in the x-ray shots on pages 4 and 5.
I'm not for the gay stuff...But this is not hard to imagine and ignore the liz's retractable appendage as long as you are not paying close attention. Props to the artist for pulling this one off Masterfully.
Double props for the D&D reference Bag of Holding my bad "Bag o' Holding". :D
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