In no universe was
Shenmue III ever going to look like what is presented in the first image (the original games didn't look anything even remotely close to it either), and the second image is a nursery-level photoshop job with the new character (shall we dub him 'Mr Muscle'?) superimposed over a 360p YouTube video screengrab, which is extremely misrepresentative. So far, we've seen just three characters from this game, two of which were clearly very early prototype models, while Mr Muscle's look appears to be coming along nicely (with emphasis on "coming along" as there's clearly more work to be done).
Judging by the look of the environments, both interior and exterior, they've nailed the
Shenmue look to a tee (examples
here,
here,
here, and
here), whereas the new character art style, which we've still yet to see in all its glory, has been taken in a new direction, and if as much care and attention is put into this new direction as has been applied to the environments, I welcome it with open arms. If they are able to find a perfect medium between the new character art style and the environments, we're in for a treat.