Did you read Huleed and Lady N's responses? I assumed those two sources they linked were accurate.
For the record, Pete Hines is not, and never was AFAIK, a Dev. He's head of PR. However, Bethesda-Publisher and Bethesda-Developer have had a close working relationship so it's not inconceivable that he would, at least at the time, be "in the know".
I think the whole "Argonians give live birth" is a retcon for them having boobs.
Argonian females have always had boobs, in Arena, Daggerfall, Oblivion, and Skyrim. The only time they didn't was when naked in Morrowind (the base model doesn't seem to have boobs, but when putting on body pieces they'd use the female version, which had them).