I cannot remember if there was a story that this picture is based on, I thought it was a headcanon dump at the time. I will have to trust your source on this @Oculusfluffy !
I think many creators at some time consider their own version of fluffy origins. The jump from “created” to “born” is a pivotal moment of that natural progression.
Regarding the PETA break in event, I generally don’t subscribe to it which is why I haven’t mentioned it or used it in my works. I understand that it’s a fairly accepted part of fluffy lore for a large part of the community and I will always respect that, but it didn’t feel necessary in my fluffy world and I feel it has not hampered the stories I want to tell one single bit.
Fluffies being “imperfect” as a result of being released too early seems like a convenience to make fluffies flawed intentionally. It’s quite a bit more complicated than I can explain clearly in words, but removing the agency from fluffies and blaming their flaws on being released too early works for stories and drawings that paints fluffies as pathetic beings incapable of growing beyond their limited capabilities. This is definitely a concept I am butchering in explanation , but if fluffies can develop, learn, evolve and grow having been released unintentionally as a flawed product, why does it matter that they were released as flawed products anyway? Maybe it is a willful act to remind fluffies they are flawed beings and to keep them in their place.