Understanding and explaining the structure of generated test inputs is essential for effective software testing and debugging. Existing approaches--including grammar-based fuzzers, probabilistic Context-Free Grammars (pCFGs), and Large Language Models (LLMs)--suffer from critical limitations. They frequently produce ill-formed inputs that fail to reflect realistic data distributions, struggle to capture context-sensitive probabilistic dependencies, and lack explainability. We introduce ExplainFuzz, a test generation framework that leverages Probabilistic Circuits (PCs) to learn and query structured distributions over grammar-based test inputs interpretably and controllably. Starting from a Context-Free Grammar (CFG), ExplainFuzz compiles a grammar-aware PC and trains it on existing inputs. New inputs are then generated via sampling. ExplainFuzz utilizes the conditioning capability of PCs to incorporate test-specific constraints (e.g., a query must have GROUP BY), enabling constrained probabilistic sampling to generate inputs satisfying grammar and user-provided constraints. Our results show that ExplainFuzz improves the coherence and realism of generated inputs, achieving significant perplexity reduction compared to pCFGs, grammar-unaware PCs, and LLMs. By leveraging its native conditioning capability, ExplainFuzz significantly enhances the diversity of inputs that satisfy a user-provided constraint. Compared to grammar-aware mutational fuzzing, ExplainFuzz increases bug-triggering rates from 35% to 63% in SQL and from 10% to 100% in XML. These results demonstrate the power of a learned input distribution over mutational fuzzing, which is often limited to exploring the local neighborhood of seed inputs. These capabilities highlight the potential of PCs to serve as a foundation for grammar-aware, controllable test generation that captures context-sensitive, probabilistic dependencies.