I'm responsible for some of those.
Playing a necromancer I enjoy nuking NPCs with incinerate bones but not killing them. When the skeleton illusion fades the NPC model looks somewhat different, more silly. Some merchants will wear a helmet, others will show bracers, women will look like gypsies, and so on.
I'm guessing this is the "glitch" you've been seeing mostly in North Freeport.
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