As I mentioned before, the sources that inspired Frenzy & Bit mix technology, magic and the traditional fantasy races, so those elements are mixed into F&B as well. Bit is an elf born to Asian parents, for example, giving her the elven ears along with her human, Asiatic features. When these traits started appearing in newborns roughly 30 years prior to the current setting, they were considered mutations, especially the more goblinoid appearances. Even the children with largely cosmetic elven traits were subject to prejudice and unease due to the unknown and apparently random nature of these mutations.
It wasn't long before fingers started pointing to genetic sources, for in this setting as in the real world, plenty of genetic research was taking place, and in a cyberpunk universe, the unsanctioned and illegal research was rampant and extreme; however, before this kind of accusation could be proven or fully investigated, the explosive return of magical energies to the world derailed any further suspicion with the presentation of an obvious alternative, for as the xeno races (as many call them) appeared from the dimensional tears that heralded the return of magic to the world, it was hard to discount the idea that the smatterings of elven, orcish and other racial traits previously thought to be mutations were simply the early fluttering of a sleeping giant preparing to fully awake. The prevailing theory in the current setting is that the perceived mutations were random, low level spikes of magic touching particular individuals and imbuing them with a sliver of the fantastical. Sort of a preview of things to come. This theory gained support as 'mutated' humans were compared to 'xeno' versions of the same race and found to be particularly human with the outstanding traits of the corresponding race. Interactions and limited inbreeding of the human, 'mutated' and xeno races had muddled the waters and larger initiatives have eclipsed the question of where the original mutations came from. Basically, there are few who care and currently little reason to actually verify the truth.
And since the question will likely come up, here is my current thinking on inbreeding of races. Separate races cannot breed. Orcs and elves can certainly have sex, but they will not produce offspring. The same is true of humans and the separate xeno races (no half orcs, etc); however, the 'mutant' humans of a given racial type can breed with either humans or their corresponding xeno race, and this is currently one of the areas that still interests those with questions. It may be that research into the reason the human 'mutants' can bridge this gap will indirectly reveal the origin of their differences from their human lineage.