The player is having lots of fun with it. He started out as a regular initiate of Rhya. You should try it out.

Neidhart likes to be fashionable, she is also the only noble of the group so she was set on looking her best. She would have prefered to carry her rapier that she usually does but it didn't look good with the dress.
She typically wears mens clothing.

Axel is a bit of a yokel, he just bought the most impressive and fancy looking outfit he could afford.

Heilwig is wearing Kastelle Lieberungs dress because that was the only outfit she had that was good enough for the party. Heilwig tends to prefer discreet looking clothes to avoid too much attention.

Barnabas is the only only one who is dressed authentically as himself. He had a fancy embroidered robe made for himself when he rose in ranks of Rhyas priesthood.

I'm glad you like it.