Hm. I don't work for Larian, I have no insider information, I have no legal expertise. I am admittedly versed in the lore of the Forgotten Realms (and a couple of other fantasy settings). And I'm living in a 21st century that has left "D&D = satanism" behind and made global financial and cultural successes of fantasy universes through Jackson's LOTR films and the GoT TV series, which included a dwarf human making lo fucking a number of prostitutes. So allow me to react in a non-optimally-informed, biased and sort of layman fashion.
I tend to doubt this is the reason why Dwarves, Halflings and Gnomes don't look as good as they should, and well-proportioned (I'm going to leave aside the question of whether, truly, well proportioned short races look child-like). Should any ill-informed and narrow-minded person complain that "omg, children have sex in this game", they would most hopefully be looked down upon by the larger, more enlightened and open-minded crowd.
Most likely, it's simply because it's still the early days of EA, and not everything is up to speed yet (understatement here).