This just happened to me and it's beyond frustrating. My male vampire sim got abducted and had an alien baby, his third. The baby aged up to toddler and was wearing a weird outfit, so I went to change the outfit, and when I came out of CAS, the game crashed. I reloaded the game and my save was before the baby aged up.
Again the baby aged to a toddler and again she had a weird outfit. This time, when I came out of CAS, all of the baby's outfits had been changed to the weird ugly alien diaper. I removed my mods and reloaded the game, and the same thing happened. I cheated to full CAS mode, and it again happened. The outfits and blue skin are instead seen in the disguise. There is no human looking disguise and I'm afraid to try to edit it.
I really wanted to play this baby from birth to death in its alien form, but not if I can't put real clothes on it. I hate those alien clothes.
This did not happen with the twins that were previously born to this sim, though their disguises were glitched in normal CAS and I had to go to full edit mode to get them to work.