I kind of feel the same way about the Shenhua model and I've been trying to convince my mind that nothing is wrong.
Much of this feeling has to do with the various versions the character has gone through, and all were hideous except this final version. I think she's very pretty now and, thinking about it, is perhaps the most human-looking character among the main ones.
The clothes have changed, but we think that's weird just because we played two whole games where no character changes clothes. S3 takes place the day after, and we're at her house so it's quite natural for her to change her clothes.
And if we look back at old artworks, we already saw her in different clothing, which are much weirder than the new one, and have no explanation yet:
And given that it's a game made almost two decades after the previous one, it would be natural for the differences to be MUCH bigger than they are. They just aren't because Yu decided not to go the realistic way.
Looking at the world of video games, it is very rare for a sequel to keep the characters looking like they are the same person.
We don't even have to go very far (and mention characters like Lara Croft), just look at Nathan Drake, whose games came out almost all in the same generation, made by one of the best studios in the industry:
It's 4 different men!
So really, we just need to calm down and wait to enjoy the game as a whole.
Once we get in the game, all this nitpicking will be instantly forgotten!