Wolves
This will sound like heresy to some of you. The creator of the Vargr understood wolves about as well as the average man on the street does. I.e. almost clueless.
Back in 1977 people still had an idea of wolves as being these lethal, dangerous packs of ravening monstrous beasts, coming in out from the mountains, killing and rampaging. Like gangs of human biker bandits, basically, but furry and on four legs rather than two wheels.
So the Vargr were born out of that old preconception of the wolf, yielding a race of, frankly, scary werewolves and wolfmen. Boogeymen to scare the kiddies. Relics of old Scandinavian stories -
Vargr, or "wolfshead," was originally the term given to
human outlaws. Hence, I guess, "werewolf" - a man that thinks like a wolf. Somewhere along the line, lycanthropy, rabies, genetic hypertrichosis and legends of shamanic animal shape shifting got conflated with this term, resulting in our modern "barking-at-the-moon" primal shapeshifting werewolves like George in the BBC TV series
Being Human, and the roleplaying game of a certain game company in Georgia.
In the OTU, I wouldn't put it past the Impies to use propaganda to increase that scary reputation to keep the kids in line:
"Obey the Emperor and His representatives, and make sure your parents pay their taxes to pay for the Fleet, or the Vargr will come along and gobble you up in your beds!"
Vargr are uplifted wolves. Cool. However, wolves have a complex psychology. They are patrollers, skilled hunters, experts at reading the land and their prey, and everyone in the pack contributes and communicates. Even the pack omega has his role to play.
If they're uplifted wolves, how come none of the books describe that Vargr should by rights have the sharpest sense of smell of any of the Major Races, and sharp hearing, and that they use their tails to express emotion?
Do Vargr have a wolf's vision, seeing things as a canine does, entirely in black and white? If so, why do Vargr need colourful tattoos and markings? Scent markings, yes - a Vargr's presence should theoretically be notable by her scent, and a Vargr disguise kit might take the form of a whole bunch bottles of different kinds of scents, to simulate the smell of another Vargr. Maybe hair dye, to dye fur patches too - but in various shades of grey and black.
From a site on wolves:-
The Grey Wolf is a social animal. Irrespective of the number of members in one group, wolves will stay together. The group is known as the Pack, ruled by a powerful male wolf. Interestingly, they hunt together, play together and even howl together. Overall the pack is strongly hierarchically organized.
Another significant fact is that the wolves are basically color blind, and their pups are born deaf and blind. They begin to see only after 9 to 12 days. With a fast growth rate, these pups' weight will increase nearly 30 times in their first four months.
Wolves may only behave like ravening monsters if they are desperately hungry, are protecting their helpless cubs, or if they are diseased and dying, driven mad by the pain. It's only humans who ravage and rampage for greed, fun and sport.
Another site on wolves
Knowing what we do about wolves today, if the Vargr were being created today I'm sure they'd have a very different story.