Most of this stuff was revealed in an internet discussion Jack was a part of in, I think, '96. Apparently, Brian in '72 bought a dildo and shoved it down his pants because he worried that Marcella would think his dick was "too tiny". If I recall correctly, Rieley then spoke of a second story where he, Carnie and Brian were in the same room and Brian was showing Carnie the dildo and saying shocking things like "I'm not your father" to her.
Jack was understandably appalled and ended up sending Carnie outside away from her father.
It's a pretty horrific story, but we must remember that Jack is a pretty sensationalist guy (he had a fabricated CV when he joined The Beach Boys), admitted to being pretty drugged up when he managed the guys, and that the events in question were being recalled over 20 years after they had taken place (more than enough time for details to get eroded/reshaped).