Game was a lot more ambitious (and lewd) on the drawing board. There used to be a "Prostitutes" faction that was canned (alongside other minor factions representing professions that the player could engage in, like Bards and such) but the sprites (NSFW ofc) were left in the final release in random locations just because. Some of them made sense (like in Inns and Temples of Dibella) but others were... just there.
I still love the Daggerfall we got (the later versions cleaned up on UESP and released in Unity particular) but I sometimes wonder about what could have been.