Ersaor looks attractive as a women.  I'm sure he'd be a lot more shocked if he could see himself in a mirror.  I'm sure he'll start to miss his ears soon, but it looks like the she giant mistook him for a goblin even though he's not green skinned.

Karlaia also hid her horns and tail so that she'd look more human.  She's had lots of practice disguising herself in the past so it's no surprise she could quickly hide her tiefling heritage, but how did she transform Ersaor and why does he look like a pretty girl?  She is going to have to deal with the giant first, but an explanation will come eventually.