My toon has clothes, but nobody else has clothes on? What.
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My toon has clothes, but nobody else has clothes on? What.
It's a bug, if you restart your client, it may fix it. It happened a lot back in the day on retail as well.
It`s a caching glitch.
Kinda figured this out after the 2nd or third time it happened to me.
But I must admit I thought there was some sort of "nude" leveling event before then. :P