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Fluffy is definitely a dog turned human, rather than a human who grew animalistic traits. I think a lot of his scenes hint at that with how he's noticeably more feral than the others around the farm. Some of the chapters show him reminiscing his time with Mr. A and in the recent chapter (chapter 11), I noticed he was drawn with an actual dog snout in one panel where he's getting petted by an unknown hand. I'm assuming this hand is Mr. A and that panel is actually a memory/flashback that was triggered when they showed Little A being similar and saying the same things as Mr. A.