Well - As far as I know her body is small, but she's the older sister of the MC's college friend. They must nearing the twenties, so that makes her 20+. I don't know if you can apply the loli tag when the loli-like person is above 20 years old.
Anyway - I rather see a 20+ loli-like than rape, murder, blackmail, hypnosis, slashing blood and rolling heads. I know it's just maybe a nuance for a lot of people, but for me? Yeah...
Age has nothing to do with whether a character can be lumped into the "lol" category.
The only thing that matters is the character's apperance + possibly, in addition to the effect, the behavior itself. If a girl has a petite body, is very short and has girlish rather than feminine facial features, she can definitely be put in the "loli" category, especially if her behavior is rather childish and she's just cute. So she might as well be 24, even though some girls in real life look like that.
PS: And so, if a particular "work" describes her age, then even though she may not look that much in terms of the law that is what she has. And why? Because she is a fictional character and does not exist in real life.
PS2: Not counting extreme cases, of course. So why do some studios etc give up trying to release such more daring games in this aspect? "For the sake of sanity".
Not gonna comment on preferences, but in my country (and a few others), it's plain illegal. The whole "nono she's 20" shmuck doesn't hold up here.
Yes, this is the preference of a petite, not tall girl with cute and sweet facial features and there is nothing wrong with that.
No one is making you download it or play it if it's so strongly restrictive in your environment.