A developer recently told me that this would be fixed in the release version. It is not. The issue is that character portraits change in race when they change to cultures linked to different graphic sets. I tested this with the 1.02b that I got from GamersGate and the issue is still present. I set up a small decision which would change the King of France's culture to Bedouin Arabic. The decision worked fine, but when his culture changed to Arabic, he actually became a brown Arab boy. I imagine the issue works in reverse too, that if your character is Arab but becomes Greek in culture, he will become a white person.
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