The game does seem to think that Steele is completely nude, when they only wear clothes with the "exposed" traits, as can be seen in the appearance menu and when the "penis" option in the masturbation menu is chosen. I wouldn't be surprised if there were other instances of it as well though.
Example texts:
"Right now, you’re not wearing a single scrap of armor, going commando down south, and letting your torso breathe, unrestricted by any undertop. You’re a shameless exhibitionist and proud of it, flaunting your naked body and giving the entire galaxy quite an eyeful!"
"You sigh and stretch, letting your bestial tool hang free. Sometimes, it’s good to be nude. You idly reach down to toy with your "
Example texts:
"Right now, you’re not wearing a single scrap of armor, going commando down south, and letting your torso breathe, unrestricted by any undertop. You’re a shameless exhibitionist and proud of it, flaunting your naked body and giving the entire galaxy quite an eyeful!"
"You sigh and stretch, letting your bestial tool hang free. Sometimes, it’s good to be nude. You idly reach down to toy with your "