Katie's never been shy and she definitely enjoys being slutty. One of her kinks is being called/referring to herself as a slut.
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She asks MC about the clothing line because she values his opinion, not because she's shy about anyone else seeing it. She has an entire company that makes sex toys, why would she be shy about anything sexual when that's her entire business?
"People that love each other protect each other and don't dawn masks so they won't be recognized in clubs."
They really do. That's actually a big part of the fetish community you just described.
As I said, if you dislike the direction the game is going, then I'm sorry, but the game may not be for you anymore. It seems you've put your own values on the characters that just do not exist within the game.