Annah looks like a bimbo in her 3D model, but in game most NPCs find her repulsive or at least off-putting. She's not sexualized in-game, but her portrait is that of a "sexy babe".
Fall-from-Grace is described as a tempting succubus (though she doesn't behave like one) and is supposed to be extremely attractive, yet her 3D portrait is rendered in shadows, very skinny, with scary bat wings and no hint of "babe" characteristics. She is not "sexy".
I wonder if the people who drew the character portraits were going by the early pitch draft, because the disconnect with the actual characters is extreme.
The lead designer (Chris Avellone), who I think was the primary author of this document, is often playful and energetic/hyperbolic with his language, yet is extremely focused and professional in his approach to the actual game design. (I.e., this exact type of disconnect between the energy/tone of this document and the energy/tone of the game is consistent with what I know of him. The self depreciation, noted in the comment below by ricardobayes, is also on brand for him.)
Source: I've worked with Chris very directly on three games and indirectly on several others. We've talked about this document in passing before (though I didn't know him until a few years later).
Edit: https://kotaku.com/fallout-new-vegas-avellone-sexual-miscond...
They completely recanted their allegations and paid him a sum of money.
That will tell you what you need to know about the state of the computer gaming industry and publishers at that point.
This was circa-"John Romero's about to make you his bitch" [0] as acceptable copy for a full-page ad.
[0] https://en.m.wikipedia.org/wiki/Daikatana#Promotion_and_rele...
IIRC it was the other way around, the pitch document went overboard with that because it was what the executives/publisher believed audiences would want :-)
Remember this wasn't the design document but the document to convince those with money to spend that money to make the game.