It won't, BUT you won't see any paperdoll in the inventory and the animation won't show what he's wearing or holding in his hands (paws?).
Another thing is that the animation won't match his colours, including the fur color as he is a naztharune rakshasa, and the animation is for a different kind of rakshasa.
Futhermore, you will need to set it manually each time you'll use his shapechange skill, probably, as the skill changes his animation to the specific one, the one that would display items properly. I don't really use shapechange option myself, but I don't know if you do, it depends on how your roleplay. I can image some would change the way he looks while being on the city.
Another thing is that the animation won't match his colours, including the fur color as he is a naztharune rakshasa, and the animation is for a different kind of rakshasa.
Futhermore, you will need to set it manually each time you'll use his shapechange skill, probably, as the skill changes his animation to the specific one, the one that would display items properly. I don't really use shapechange option myself, but I don't know if you do, it depends on how your roleplay. I can image some would change the way he looks while being on the city.