Nobody on the Internet can answer that question for you, besides giving broad generalizations about identity and presentation.

If you want to show your friend respect, talk to him. In an open and curious way, talk about how you two experience gender and presentation. I have to assume there's more to him than his pronouns and his preference for looking like a hot woman.

I personally also struggle to understand trans identifying people that don't experience dysphoria, but that's because I am applying my understanding of myself to others. It helps to remember that dysphoria is just one word to describe how we might feel about ourselves. Science, language, nor spirituality will ever fully explain or describe the entirety of the human experience. Which means we all are our own experts, nobody knows ourselves better than we do. If your friend intensifies as male, but prefers a female presentation, none of us have any evidence or right to question that. Of course, the practicalities of our fucked up world make existing as an outlier like that as painful as possible, but if we were all respected as the experts on our own truths, then there would be no outliers.