You are right, the fact that it looks bald is so terrible im surprised they passed it off like that. This is a good suggestion and wouldnt be hard to for an artist to fix (source: im an artist in game dev and I know this would be a 1 day fix at most)
I get that clipping seems unprofessional to most 3d artists, but I think in that case, they should just let the facial hair clip. It can’t look that bad.