(To preface this, I'm fine with and have no intention of harassing K7 over whatever he decides to do. He's said he'll write what he thinks is right for the characters and I respect that.)
I don't really understand this line of argument from you and others because to me she looks only slightly younger than Morgan and Sophie. Saying the two of them are totally fine despite them also looking young/petite but saying Olivia, who looks similar and is also clearly pubescent, too loli-like is very disingenuous. The actual loli fans would label her a hebe rather than a loli and, even here on F95zone where rule 7 bans many such games, she is allowed. Hell, you can find adult video performers with a similar body type - she is young looking, yes, but is still in the realm of plausibly adult.
Second, her inclusion/exclusion as an LI has been uncertain for most of this game's existence. Yes, when first posted K7 said in the dev notes that she would not be an LI. But that was shortly after removed and replaced with "Also, all the characters you will meet in the game will eventually be lewdable.". Admittedly, K7 has not from what I've seen confirmed one way or the other and has only said he'll do whatever whatever is right for the characters. But this is in line with what others have said happened with Alice in MNF where she was initially not an LI before becoming uncertain and eventually becoming an LI.
So as I said, I support K7 in doing whatever he feels is right even if that means excluding Olivia and am not asking for her to be one. What I am pushing back against is you and other members stating, without evidence or clear rational, that she is definitely not an LI and that anyone asking about her, but not about the other petite girls, only cares about her because loli. I, like others have said in the past, would like her to be an LI since excluding her out of the whole family seems odd in concept and would be odd to see play out.