I'm all in for complete nudity when taking a shower or something, but not in fights, unless it's about a magically shielded creature like an Angel or similar.

There can be sexy and still functional armors; these are actually top tier stuff, because would cost most to make a protective gear that also looks great. Not chain bikini level though, those aren't armor and not even sexy. A tight leather or similar would be far sexier, if the body under it is sexy. Less is more.

The BG3 leather armor already looks better than what most other "western games" have, but I like the realistic style of the weapons most.

Certainly there is place for improvement, to make armor both sexy and functional. Variety is good, instead just basic ugly stuff. The boring old style can still be there for the puritan souls and the poor who can't afford more, next to hot and sexy masterpiece armor pieces.