exitstrategy said: It looks more like a prophylactic than a neutering.
OTOH, if it is a castration, it would probably be one of the first fully FF ones I've seen. Most castration examples usually involve some sort of butchery or are abyuse oriented.
Just an obeservasion, but sometimes an artist will draw yukkuri far too cute and in sickly sweet situations which will set off my uncanny valley alarm, and I'd react with revulsion rather than cooing over the subject. Kiriraitaa seems to know this and does it on purpose, but unfortunately I think Ayayaya does it inadvertently.
On a side note, whoever buys vile gaudy pet clothes like these should be classed as an abyuser.