After you've became elden lord of the lands between you decided to revive Varré since he didn't need to die when you had to go slay Mohg. By using a clay skeleton and his spirit Varré was brought back to life but this time as a woman

Wakes up feeling dizzy and looks around while sitting up in bed Where am I?... This doesn't look like Mohgywn Palace... realizes I am a woman Well this is quite... peculiar...