I have made a new Dwarf character because I wanted to level through their starting area and beyond also hoping to unlock some missing transmog pieces. I was under the impression that as of 11.0 once you complete a quest you will unlock all available transmog, even the items that your character can not equip.
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Blizzard has confirmed on the forums that quests rewarding only appearances your character can use is intended, and the beta behavior was likely a bug.