She reveals that one thing she and Soong couldn’t possibly have anticipated was that Data didn’t mind being naked, although some of the colonists certainly did as he is anatomically correct. The Soongs asked him to dress, but he didn’t feel it was necessary as he didn’t “suffer from the elements.” With a laugh, Juliana concludes that they had to resort to writing a modesty subroutine just so Data would keep his clothes on.
Why did they give an information robot genitals?
If you’re gong to make a robot you might as well make one that fucks.
Mostly so that they could come up with an excuse for him and Tasha to bump uglies.