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Well, considering that this is an enemy creature controlled by him, the 2x2 tile only becomes an issue when you try to attack with it. Other bugs are much more annoying. Creatures running through a 3x3 creature and creatures placed inside a 3x3 area. You could ignore the tile that only works in one situation, but everything else really spoils the experience. And I think it's better not to use this feature.
Do all creatures run through it, or just allied/enemy creatures? And can creatures stay within the 3x3 area (I think not, since you can't specifically target that area with a turn)? The arrangement can be adjusted, although it's not easy, and if you use the Kraken as a solo boss, there won't be this problem at all... but overall, there are too many unnecessary conditions for a mod focused on visuals, so I'll leave this idea for a single-player game.