Anyone who went to college before 1999 knows that "phugly" and "fugly" refer to one thing and one thing only. In the vernacular - and yes, this is crude slang (but this IS web site devoted to 'urban' and not necessarily to 'urbane' language usage)- the word "phugly/fugly" was coined as a contraction of the phrase "fucking ugly." Sorry, "phat" was never part of the equation.
someone who is pug ugly. someone who has a face like a pug (breed of dog) and is extremely ugly in personality and physical appearance. can also be used to describe someone you really dislike.