There's a scene in the game where the character is taking a shower. The shower stall is glass, and the glass is frosted from around ankle height to neck height.

I haven't played the game myself, just came across the scene on YouTube several years ago, so I don't know how justifiable the choice of the scene is in the first place. At least, from a technical point of view, it makes sense to me that they modeled the full nude body so that the frosted glass would blur what we "see" in a realistic way. It's a lot easier to model something and then have the glass blur it, instead of directly modelling the blurred version for example.

Personally I think most of the creep factor comes from the fact that this character is explicitly modeled after a live human being who presumably didn't sign up for that.