This is an NPC from the crafter quest line. She is the daughter of the NPC on the right. She is as tall as an adult wood elf, and nearly as tall as her mother. Given her childlike features, I'm assuming this is an oversight. Sorry, height discrepancies trigger my OCD. I remember when Freeport was revamped, randomly most of the NPCs were way outside their normal racial height brackets.
Yao Ming was five and a half feet tall at age eight, and six and a half feel tall at age 13. Just saying!
A lot of this I suspect is a by product of there being very few "child" models. Personally, I'd rather Denmum spend time adding new stuff and/or fixing mechanics than what seems to me to be a minor cosmetic thing.
Piccolo's height in Svarni is also unusual...And while I didn't take a screenshot, I can confirm his height in Karuupa was normal. Looks like the height sliders for this bunch in Svarni are just tuned too high.