It is NOT purely cosmetic. I compared before and after screenshots of the character stats (because I couldn't believe such a thing would be purely cosmetic so rolled back the save) and it is about a 10% attack boost, crit up 4% and block went up 2% as well — approximately. It only applies to the original character in their original class. No one else gets the boost.
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Re: Xenoblade Chronicles 3 - How To Complete The 'Uniting The Seven Nopon' Quest
It is NOT purely cosmetic. I compared before and after screenshots of the character stats (because I couldn't believe such a thing would be purely cosmetic so rolled back the save) and it is about a 10% attack boost, crit up 4% and block went up 2% as well — approximately. It only applies to the original character in their original class. No one else gets the boost.