I am on PS5, Patch 5, Hotfix#18.
I can confirm all my hirelings correctly display armor.
If your characters are not displaying armor, try the following:
Go to your inventory, then press triangle to toggle Overclothes on and off:
For individual pieces of equipment, select Armor, Helmet or Camp clothes then press Triangle. Towards the top of the screen it will tell you "Hide Camp Clothes," "Show Camp Clothes." Equipment that displays "X" on the bottom left corner indicates invisible, and an eye means visible.
If you are toggling the helmet, there are options to "Show Helmet," "Hide Helmet," and Helmet but show your face during cutscenes.
![[Linked Image from i.ibb.co]](https://i.ibb.co/NF8cFnw/Toggle-Overclothes2.png)
Here is a screenshot of when the main character speaks to the Hireling:
![[Linked Image from i.ibb.co]](https://i.ibb.co/y083Ln3/Zenith.png)
^ During dialogue, the hireling also correctly displays armor.