- height
- width
- fat amount
- muscle amount
- length of appendexes (arms and legs) relative to body size
- size of hands and feet relative to body size
Add posture (hunched/upright/?).
And all of these multiply into a testing space. As a typical case take the kissing scenes (putting the hand on the cheek, touching the other hand, kissing, and then hugging). How many different variants of those scenes do you need when you can vary every one of those parameters?
Do you remember the number of bugs in BG3 due to kissing between elves and dwarfs?
In the end it very much comes down to priorities. Do you prefer realistic, scalable armor to the expense of world design, story elements or voice acting?
There are limited resources and the amount of work it is possible to put into even tiny elements are staggering.
I am not sure a majority of players actually care that much about realistically behaving armor or slider scale of all bodily measurements. My wife, who has a esthetique sensibility that can be rather overpowering, has never mentioned armor clipping, scaling or body types as problems in BG3. She has always gone for the standard female body type. Color schemes, design of outfits, look of combined elements, hair alternatives and faces, on the other hand .....
I do think the look of the characters are important, but for most players it may not be in the same sense as for us "super nerds".