Wendy Melvoin and Lisa Coleman were Prince’s best friends and musical partners from the early 1980s onward. They were members of The Revolution, and yes, Wendy and Lisa were a couple, and Prince was aware of that. The “fancy lesbian” line was a joke, not a literal statement or an identity claim. Prince identified as a man, and the comment was a humorous way of pointing out the irony in how people project labels onto him and that if he were mislabeled as anything other than heterosexual, the only