@SoronelYou'd need to focus on the characters involved, not what the AI is doing.
Consider the film the Matrix and specifically what happens when an agent takes over a body.
Is the original personality simply ejected and the body disposed of? Do other people in the Matrix see the agent or do they see their loved one go crazy? Does the original personality come back or just disappear, and if it comes back do they remember what the agent did?
Consider the final scene in the first film from the POV of people who don't realise the nature of the Matrix. How many people had their loved ones go crazy and drop dead as Neo was running from Agent Smith? How do you go on with your life after that happens, especially when you don't know why it happened.
That's horror. The fact that an AI can bounce in between bodies changing things is weird, but it's not scary except to the person being changed. You need to focus on what they are feeling, not what the AI is doing.
In the F2M case the AI has her father available so can generate an appropriate X chromosome.
The X chromosome is female, withe women being XX, while the Y chromosome is male, with men being XY. The X in a man's DNA comes from his mother, all ova are female. Sperm can be either X or Y. [Ignoring mutations and genetic errors.]
Not sure if that was just a typo on your part, but as written it makes no sense. The easy what to do an F>M transition would be to take a XX zygote and remove some of the DNA from one of the Xs.