I spent some time trying to understand the cause of the error, and I found that the key to the error lies in the proportion of the characters, or rather the position of the genitals after the body is deformed. Should this be the error of New Genitalia For Victoria 6?
Try this new version, I was given a set of VAM morphs that for some reason had more vertices than what G2 has. Daz will apparently crash if the Daz morph file has more vertices than the G2 base figure when you try and change some settings. Perhaps your genital morphs suffered from the same error?