I’ll assume you don’t know how Fated Engrams work and explain, instead of calling you names and telling you this is common knowledge. This is my one good deed of the day...
Fated Engrams will drop a Year 1 exotic (no Forsaken exotics) you don’t already have. If you have all the exotics (again, no Forsaken exotics) he will drop a Year 1 duplicate.
Hope this clears things up.
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This raises other questions now...since other clan members have reported receiving a Year 2 Exotic. But maybe they only think they received a Year 2 exotic...I'll just ignore Xur for a while.
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They may be talking about Borealis, which was a PS4 exclusive up until Forsaken, and it will drop from a Fated Engram if you have all the rest. That is still a Y1 weapon, but since very few people knew about it, I’m guessing that’s what they got. Bungie has stated that Xur is not giving out Y2 engrams in any capacity at the moment.