Making my way through Mongoose Vargr, There seems to be a belief that they are perfect, at least in some parts of their society, so they may be disinclined to meddle directly with their genes.
I may as well thro my two bits in.
The group you are looking for is "The Church of the Chosen ones", a Vargr 'religion' which essentially adheres to the view that the Ancients elevated the Vargr for a special purpose.
A short paraphrase from V&V p42....
Some members of Gvegh culture have their belief in Kaenguerradz, racial superiority. 'High Kaenguerradz' say that Vargr were designed to be better than everyone else. 'Low Kaenguerradz' says then Vargr were the original Terran sapients, and the Ancient moved them to Lair so they wouldn't interfere with the geneering project of the local monkeys (aka proto-humans).
If you really are looking for 'specially bred Vargr', you would look at the Irilitok or the Julian Vargr. The Empire of Gashkin (during long night) grabbed a lot of Vargr slaves, selection being based on how 'humanish' the Vargr looked. After a few hundred years the slaves outnumbered the owners and the inevitable happened. Of course then non-bred Vargr moved back in from Mendan so any changes are being rapidly diluted - but in any case they were still vargr, they just looked a little different (but even then not to the extent being proposed in some cases). (V&V p 47)
I may start reading some furry comics to get a better grip on this psychology.
Furries are (for the most part) humans in funny suits, Vargr are aliens.
Even if they are 'wolf based', wolves (Canis Lupus) have been around for about 1 million years, while humans (Homo sapiens) for only about 250,000 years or so. So when Gramps snached their ancestors away, ours had barely entered the scene. Comparing them to modern wolves is the same as trying to compare us to Homo erectus. Sure, some bits are similiar but a lot is different - especially the brain.