Wh-why is everyone made of chocolate pudding?

So I just started up a BGII:EE game today and upon entering Athkatla I've noticed every 'none important' NPC looks like they're made out of chocolate pudding... Only shop keepers, scripted encounters and party members seem to have any colour.

I'm not sure if the issue was in the vanilla game as I modded before starting up a play-through.

I had BG2 Tweaks and Banter Packs installed but removed them to see if they where causing the issue, I also verified the game cache through Steam. Still have chocolate people.

Any fixes I could try? Or should I just do a whole reinstall of the game just to see if that works? (urgh... want leave this till last as my internet is horrible, takes an age to download anything from Steam)