I suspect the merc's appearance is reset to default hair/face if you have the merc unsuspended when you level up.
We're all getting older. They really should consider installing a teleport to Freeport. Got all my keys on the keyring today. Yeah the azaracks still path all funky and all over the place. Coincidentally, Overseer of Air visited me on island 7 for a short time. It only came to the edge of the island, before turning around and then hovering somewhere down in limbo by one of the chains. I could target it from the 7th island, but from any other island in the zone, I could not find it.