Allag

[ObsidianFire]

The red eye is a sign of having the Allagan Royal Genes. That NPC has it because one of the survivors of Allag purposely genetically modified his ancestor to have it. And from the sound of it, it was because she trusted him. If how Doga and Unei give him a second Allagan Royal Eye is any indication, Allagan genetic modifications have very little to do with mechanically messing around with genomes and everything to with magic techniques...

We see another Allagan (kinda) in the Lvl 60-70 SMN quests. And he looks like a normal Hyur.

The problem I have with the Garlean traits (aetheral sterility and third-eye) being Allagan in origin is that everything the Allagans did seems to assume everything has aether it can manipulate. I have a very hard time seeing them make a race that can't use aether given that most of their genetic projects produce beings that can use aether. I also think we'd have discovered something about the proto-Garleans in Azyz Lla by now if that was the case. Instead the proto-Garleans are all the way over in Othard...

On the other hand, if you assume the Garleans are really just huyr with some genetic variations thrown in haphazardly, they're in a similar situation to the Ixal. The Ixal's genome is very unstable and things like flight capabilities didn't last long in the genome. Kinda like how the Aetheral sterility and the third-eye don't show up in half-Garleans. If the Garleans weren't so committed to "racial purity", they probably could have lost both the aetheral sterility and the third eye a long time ago.