I'm pretty sure most of those images are actually from Citizen Siege rather than from Fangus.
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If I recall correctly Fangus Klot was never meant to take place on Oddworld but a different planet where more humanoid organisms evolved. This may allow more open room as far as the morbid factor is concerned imo.
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At the time when it was first being developed, that was the plan. If the project were to be restarted now, it would be set on Oddworld, although not on Mudos.