That's what you get in most games with body sliders. The animations are designed for a slimmer default size so everything just clips if your character is too big. What makes it different in situation like this is that the update was intended to make the game more representative and inclusive, so you'd expect some effort being put into making the new options not feel like an afterthought or something out of a meme game like Palworld.
Unfortunately it looks like animations don't get adjusted at all to account for different body proportions so your limbs just clip through your body constantly if your sliders are cranked all the way up.
That's what you get in most games with body sliders. The animations are designed for a slimmer default size so everything just clips if your character is too big. What makes it different in situation like this is that the update was intended to make the game more representative and inclusive, so you'd expect some effort being put into making the new options not feel like an afterthought or something out of a meme game like Palworld.