If a game like that used any other software to create characters and didn’t bother to apply proper shaders, any kind of face animation or head turn mechanics (for NPCs), fine tune character movement instead of insta-rotating NPCs to face the player with short repetitive idle animations all over the place etc. It has TONS of problems, with utter lack of polish being the common denominator. “At The Mountains of Madness” strikes me as a very very early alpha (therefore a bad example anyway) - one of those games that would have benefited a great deal from staying under wraps a lot longer before going the EA route or simply one where the ambition of the devs by far exceeds their talent. I don’t think that is a problem with how Fuse makes the characters look.
At The Mountains of Madness has this problem. Else your game will look as dead as a doornail with the way the program makes there characters look. Just keep in mind, Fuse should be used for Placeholder characters, not Promotional Materials or Final Game.