"Blacksmith Dunkel" is definitely more buff than canon Elliot Dunkel, and one reason for that is simply that all things are relative, and I didn't want him to look puny next to buff hero Susan.
Could canon Elliot achieve such mass? Possibly. I imagine he'd have to add regular weight lifting to his exercise routines, but there's nothing saying he can't do that.
I can't think of any games I've played in which NPCs actually care about personal space. There are plenty in which they'll comment on your sneaking around, or tell you to leave a particular location, but you being right by them to the point of bumping into them, and not looking at their face while having the camera pointed at them? They just do not care.
Closest I can think of is NPCs who will literally be pushed aside due to you running to close to them (they won't thank you for that), and followers who move back when you get too close (which I assume is a mechanic to keep them from blocking doorways and such, in which case games need to do more I'VE BEEN TRAPPED SO MANY TIMES).
I do think it would be an immersive mechanic for NPCs to react to such things, but sometimes I just want to check out the details on a cool outfit or something, and I don't need them judging me for appreciating the art team's texture work.