The unlocking was skewed towards female outfits for male characters because the counterparts were often unlocked long ago.
The Lord Errant set will come alongside the Lady Errant, not to keep arbitrary balance with something it isn't linked to.
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From my understanding, Yoshi did actually comment something along the line of "the art team is testing this out with the engine and want to actually push this even further if possible", but yes he did say specifically don't expect a complete graphics overhaul so the game won't look like for example "Horizon Forbidden West", which is accurate I'm sure. If they are upgrading the engine (most likely from their experience working on the next Final Fantasy game) it's possible that it can handle more than they think since Yoshi announced this essentially during the testing phase, so we'll have to see! I'm being optimistic and hoping they can push the graphics update a little further than expected in many aspects, especially since 5-8 years from now they are still gonna be adding content to the game and I can only imagine how much more realistic other games by then will look like so they'll want to future proof this game as much as they can :)