To me, Art of fighting 3 looks like it's an unfinished game. They could have made it a lot better by adding a few more characters.
A lot of SNK games (like AOF and KOF) have characters that fight in suits (Karman Cole, King, Geese) or jeans (Terry Bogard). Why would anyone in real life fight in a suit, or jeans (unless they were in a situation where they were forced to)? If you're doing martial arts, it's hard to do the high kicks if you're wearing tight-fitting clothes like jeans. But SNK was trying to make their games and characters more classy by dressing them well, I suppose.