I’ve have seen two version of that bug first hand. The first of which was as you described, merely a skeleton. I normally see it happen when someone spawns on the Ferry and they don’t fully load in. The other form was a bit more interesting. It loaded them in as a skeleton, but their accessories and clothes also loaded in so they appeared more as a skeleton pirate rather than just skeleton. It loaded in their skin about half a minute after they spawned.
Personally, as another commeny mentioned, it would be cool to see it more as a feature. I’d love to go around as a skeletal form of my pirate, or ghost form, even if that meant essentially painting a huge bull’s eye on myself.