Without full game what we can access is mostly limited to character creator, but I already found out some weird stuff going on.

Consider the Miqo'te racial panties. They have proper seams along the edges:



In benchmark seams are completely gone on the edges and AI has hallucinated some nonsense (that looks like...octopus suckers ) instead of middle seams:



Well from this is clear that all textures were upscaled by some AI algorithm and all the bugs with hair textures or flattened look of characters are result of it.