I don't know if this is a bug or a change introduced with the new style skill line.
I tried to convert some gear that I had converted myself to Imperial style and nothing happened. I get the menu with the option to convert the style. When I select it it drops back to the inventory and the style doesn't change. The same is true with Morag Tong style. Either the ability to convert gear is supposed to work but has broken or else ESO has removed this ability but still has the menu's available, which don't do anything.

I have had my Redguard and Nord running around in a hand-me-down Khajiit training set during experience grinding during the XP boost. They look like cat woman and cat man....May actually be kind of comical.
Aesthetically I could just use a costume to hide how they look.

It would still be nice to find out if this is a bug or a feature deliberately removed.