It's because its a pre-rendered video that came out with the game.

love how this new texture works in cutscenes but in other cutscenes that have less quality (not due to this mod tho) dont have the new texures is that because its a set video by the creators of kotor 2 or that its a glitch? (if its a set video dont worry about having to re-animate it, im okay with the way it is now, just wanted to point that out)