Discussion of the Necropolis faction.

No, the upgrade doesn't remove the cloak; it just washes it with bleach, take a closer look.
And it also adds a few more details.
In general, I would like less material ghosts. If the body in the game is semi-transparent, then that would be great.

Maybe, but I still think that after the upgrade, there is no cloak. And the holes are in the ghost's body (soul?).

Added 1 minute ago
In general, the ghost is already material, since it can fight. And various attributes of the spirit's existence, in my opinion, do not interfere at all.