> Geffen records wasn’t thrilled about a penis on the cover, even though it was a baby, and had prepared an alternate cover, Cobain made it clear that the only compromise he would accept was a sticker covering the penis that would say, "If you're offended by this, you must be a closet pedophile."

Quote above is from [0] which includes the backstory, and the fact that the now-grown child seems quite happy to have been involved. He even recreated it.

[0] https://937theriver.iheart.com/featured/derek-moore/content/...