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I wonder whether those legless avatars fall into the "uncanny valley":

It definitely does. A better approach would be, gradient fade down towards torso. This feels wrong as a sudden cut below waist line.

Yeah, why no legs?

I'm going to guess they don't want genitalia or behinds making this a more adult experience.

Because legs aren't tracked, they would be out of sync if you move, and it is easier just to leave them out.