Oooohhh, that's the new hypno item? Man, that was a let-down, I thought it was a new gadget of sorts. Oh well. I already did collect the cats and it does look like a nice palette swap, not gonna lie.

As for the partial undress option, it's in the room where you get the brainwashing visor when you turn on the TV to the channel, wait for a bit, and it should be on the lower left of the desk once you're in that room.