It still doesn't affect you. Except if you're a puritan that don't want anything that can be perceived as remotely sexual in your life, but the social media perception of the game is SE's problem, not yours.
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I don't care of people using mods to change how the game look, not my problem TBH. However, since a while now we are getting certain stuff that give advatages over people not using them. We lost the ability to change markes mid fight since third party tools could do it as mechanics happens making the whole encounter easier. I don't know, "gameplay QoL" are getting out of hand on PC.
I would rather FFXIV devs give official support to addons and just "break" the ones they consider bad for the game, that or find a way to stop what we already have.
To me the funniest part is...
By complaining about the "futa" (don't recommend google) mods, I know almost certainly what modding discord he's hanging out on. I'm on several, and I know which one gets the most of those pics (and before anyone says it, I block people who post it because....EWWWWWWW).
EDIT: Also, those body swap mods affect every body that uses that texture and model. So every Female Hyur and Miqo will have exactly the same changes (I forget which races share what, but it's more than you would think). Use a mod to give them a tattoo, all of them in game PC and NPC will have it. So even if someone is oggling the clowns character, it looks exactly like all the others.
There are definitely some creeps out there.
I've seen a few cases on Crystal over the years of someone using CMTool + mods to create porn of another persons character without their consent, often sending it to them afterwards as some kind of creepy overture. I've also run into a lot of modders who don't really have a filter/boundaries, and will just dump their erotic screenshots (without asking) into any discord they join. It doesn't really bother me personally as I think it's kind of funny, but I can definitely see where other people might feel grossed out.
The discords don't usually ban people over that because it'd difficult to prove who actually owned the character. You can fantasia any time and copy anybody. Typically as long as the photo isn't thief, they permit it. Otherwise a lot of generic catgirls wouldn't be able to post any photo since most look alike and you don't own the design of a character.