Transgender vagina-penis on one?

So first of all I know that this isn't true but I promised my friend to at least do some check-up before I come with accusations and Google disappoints me in both English and in my native language.

I have a close friend, let's call her V. V has sent pictures and described herself as a woman with a neovagina as a result from surgery. On the pictures of her lower body her legs is close to one another and her package could easily be concealed there.

on the pictures were a complete vagina is seen her fingers does not look like hers now that I've met her a couple of times. ((This is not something I thought of prio this event that I am about to tell you, however)

V has been sexually involved with me and my partner. I am bi, my partner is unsure but liked the interactions we had with V. (We did not have full intercourse with V, but she gave us oral-sex)

I also have another friend, J. Fully woman and I figured that V and J would make a great sexual match so I introduced them to one another and during this evening V suddenly tells us that she is in between surgeries and that her vagina can be pulled out to a penis.

I do not know much about transgenders but I think I know enough of penises to know that it would not be possible. Either way it's her vagina and I did not felt like it was in my place to question it.

She and J had intercourse and now I hear from J that it was dark in the room and all of the sudden she had a penis in her vagina.

So is it even possible in any way shape or form for her to be able to turn her penis inside and out and still have it as a functioning organ?

I am now torn in how to confront V about this since she might or might not have put one of my closest friends through the risk of pregnancy by using her penis. I know that hormone-treatment makes you sterile but how could I even trust her on taking hormones when she isn't being honest about other things?

(( To clarify; I know she's lying, I just want some inputs and ideas of this. I of course informed my partner about this new information and my love said that they did not wish to include her any more, least not until things have been clarified. My partner is more irked with the lies than the genitalia))