"Narrative is kinda a mess here and there, a lot of inconsistencies like referring to the goblin sometimes a she or he depending on the interaction. Player character insisting on being a he when by default wearing a skirt which is just odd, even the brigand wears pants and refers to themselves as a she."
It's called Tales of Androgyny.
It's in the name. It's a game with masculine, feminine and androgynous characters. Their gender isn't what defines what they wear, it's their preference that does. What they call themselves and how they identify is how Hiro identifies them. There's a futa option if you want to turn that off, it'll remove and change several characters to not be androgynous. But, you're gonna get some guys wearing skirts and some gals wearing riding pants because that's sort of a key theme.
"Edit: Oh yeah, just remembered. I think it would be better if the player character started in a small town and wasn't just thrown out into the wilderness. and the next town if there is any other ones anyway should be relatively farther to give the player more to grind or something. "
Yes, that's story mode. You can play it if you get the Patron build by donating.
"like, a dress that gives more charm and agility but less/no defense or something. "
You get those in the Town of Monsters, Lingere you can wear instead of armour.
I don't want any of this to sound rude, just so you know. Please feel free to reply to this with a response you find fitting, I just felt like you misunderstood some details about stuff.