Please see the two photos. The only difference is the FUT grafts have tissue around its follicles and the FUE grafts have no tissue.
FUE is a blind procedure, the deeper the cutting, the more chance of dissection of the follicles. The standard method is to blindly punch through the skin then use a strong forceps to pull them out. This is the reason why there are no tissues are around the follicle level and the follicle is left exposed with no protection.