The problem with many outfits or armor in BG3 is that they are too costumey. Too decorated. They don't look or feel like clothes these characters would actually live or travel in. Even starter gear like the Druid Leather Armor. People who live in the wilds don't wear costumes. They wear utilitarian outfits that show a little wear and tear. Nobles in Baldur's Gate might wear costumes and fashionable decorated outfits, but in BG3 everyone does.
Some designs, like the basic Leather Armor or some stuff the NPC's are wearing look more believable. Like the Breastplate Aradin is wearing.
Overall I'd say Larian's designs lack situational awareness and tend to be too overdone and too costumey.
The best part about fantasy games is that it is fantasy and thus does not have to be realistic (I mean, come on - we're literally throwing magic around and having backpacks with as much space as an entire garage). :] I'd advocate for both realistic armor options like the basic leather armor and the breast plate for those who want it, and more elaborate and decorative armor for those who wishes for that. :] Each to their own immersive fantasy!
It's a question of visual style of the game. You can't have both realistic and high fantasy style exist in the same setting. Or you can, but if the baseline is realistic like the Leather Armor, the extravagant designs look ridiculous in context and should also be called out by people living in the game world.
Then there's the fact that characters have photorealistic models, which sets the visual style of BG3 closer to realism regardless of anyones personal preferences. That's why the more high fantasy style armors feel out of place to begin with.
