I’ve noticed that a few newly created characters look like they’re still wearing their level 1 gear even though I have them in heirloom gear. Night-elf druid (boosted), void elf mage, dark iron dwarf shaman, worgen rogue, pandaren priest, draenei hunter all have this issue. Human warrior, lightforged paladin, kul tiran death knight all show their equipped heirlooms on the character select screen. I logged on the hunter and logged it off just now and the gear looks correct now. Just a cosmetic issue since they do have the correct gear, just doesn’t always look that way when selecting the character.
Character selection screen does not display transmog gear when gams is first loaded. It does display once I log and back off. Realm : thunderhorn toon : numphar.
This looks to be the same issue as the OP.