In a large bowl, whisk together flour, brown sugar, baking powder, salt, cinnamon, and nutmeg.
In a separate bowl, whisk applesauce, milk, molasses, vanilla, and egg until combined. Add mixed dry ingredients into wet ingredients and stir gently, being sure not to overmix. Fold in the apples.
Preheat the air fryer to 400F. Once preheated, line the inside of the air fryer basket with parchment paper, then drop ⅓ cup-sized mounds of batter in the basket, being sure not to overcrowd them.
Air fry for 6-8 minutes, until golden brown and cooked through. Transfer them to a cooling rack set over a parchment-lined baking sheet. Repeat with remaining batter.
To make the glaze, whisk together powdered sugar and milk in a medium bowl until smooth. Drizzle over warm fritters and serve.