I've noticed a couple bugs with clothing. After you lose a fight and are naked, gaining your clothes back doesn't always properly show the correct world model if you try and equip the bunny suit. You have to exit and reenter the menu a few times between removing clothing and equipping it to get the equipment to properly show (or not show).
Additionally,
[Spoiler for the final fight]
if you start the Khazeem fight not wearing any clothes, after he talks to you and the second sprite comes in, it will revert to you wearing clothes again.