As you explore New Arcadia, you will collect Machine Parts, both from felled Fruit Fucker enemies and sometimes just lying around. There are enough Machine Parts to upgrade all three characters' weapons to their third and final "normal" iteration.
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All the Machine Parts in Desperation Street will be collected automatically by defeating all the enemies encountered during the Tutorial.
There are spare parts lying on the tables in the warehouse - inspect all 17 to pick them up.
The Fruit Fucker (Mark IV) enemies in this level drop around 25 parts each when defeated.