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Unfortunately, This has fixed Lionel's abilities for normal fights after transforming but has brought a slew of new ones.
Firstly, while I now have the correct abilities and stats in following battles, the game still says that I have the Weretiger instead of Lionel and that he appears as the Weretiger in battles.
Next, in case of a cutscene, the character model completely disappears and if a fight occurs after the cutscene the fight breaks as in the image below.

On top of this, the first problem wasn't limited to Lionel but also included Yurlun, perhaps I should have been a little cleared about that.

It started the moment I got access to other abilities than the basic attack, meaning the time you play as Lionel.

I found what I think is a bug. (SPOILERS BELOW!)

It seems that transformations seem to not revert after battle, and sometimes end up duplicating characters. For example, once I used Tiger Heart, Lionel stayed in weretiger form. After reconvening with Yurlun, I had both a weretiger and Lionel in my party.

Excellent start to a game. For now the game is nothing but a short grind to set up the rest of the game, but it felt promising. The grind didn't feel too tedious, although that might be because I just got from rune grinding in Elden Ring. I will say, the enemies did feel a bit on the weaker side, especially with the warrior stance.