Even in DOS2, this system looked comical for most time. The game believed you were masked even though everyone could see your face.
In BG3, such mechanics would look even more stupid because of the cinematic dialogues. Besides, there is not even a helmet covering the entire face in the game.
I would prefer to avoid a situation where the guard cannot recognize that you are a drow, even though anyone who is not blind should notice it.
That would be trivial to fix, though? Just introduce full helmets/masks (and full-cover attire) and tag them as such. Wearing those would block race-specific reactions.
For something more involved, some guards could require you to show your face if you want to pass.
