Here's where you're maybe missing the point of me using that promo image as a reference; the goal is not a total recreation because, well, that model is nearly 20 years old and had significant geometry, polycount, and lighting restrictions to deal with, even for a promo image.
The goal, which I believe is the same one YSnet has in using that model as their base, is to be evocative of the look but not 100% slavishly dedicated to replicating it for better or worse.
Complaints, for example, about his eyes are kind of redundant when you consider that 3D graphics capability has gotten to the point where modellers can make Ryo's eyes look like they would if actually sitting inside an eye socket (causing the "bags", or more accurately the skin fold of the lower eyelid), and lighting can account for the fact eyes are recessed further back than the brow and the cheekbone, and would cast a natural shadow as a result.
It's the same with Ryo's lips. Analysing down to which lip is thicker is a kind of busted metric when now the modeller can properly convey the way lips stick out and then tilt back in to meet. It's not like 20 years ago when a modeller or texture artist had to disguise fairly simple geometry as an actual mouth. The difference is
genuinely minuscule anyway.
Going on about what looks Asian and not Asian is also kind of redundant considering Ryo has a few non-Asian traits in most iterations of his design, like the notable lack of the monolid eye (basically, no crease at the top of the eye). Now I made sure to say most, because Ryo's in-game model does have a monolid, though this would have been a modelling constraint because back then it would have been impossible to properly model an eye crease.
The point is, just because something may make the character "more Asian", that's not necessarily in-keeping with the character design (especially if we're talking eyes). Kazuma Kiryu doesn't have the monolid eye, while Akira from VF does. The common factor? Ryo, Kiryu, and Akira are all Asian characters, but two are lacking a distinctive Asian characteristic. Are you catching my drift here?
I'm not sure your edit does much to make Ryo look particularly more Asian either. It's just... flattened out the details. Weirdly enough I see a passing resemblance to Rick Astley in your edit. It's odd, I know. Rick Astley seems to have sort of monolid-looking eyes now that I think about it. He's not Asian... or is he? Fun fact: Never Gonna Give You Up was released in 1987, the same year as Shenmue III is set, so... *X-Files theme plays*
But seriously, the issue with the new Ryo model is proportional. It has all of Ryo's features, but the scale and head shape are a bit out of whack.
Here's the upper half of the new model's head.
That's Ryo's hairline. That's definitely his eyebrows, and those are his eyes, almond-shaped and lacking the monolid.
This is the lower half.
Ryo's frowny-ass mouth (they've even repeated the trick from the old models of having the top lip be slightly darker, for added contrast), bandage, and kinda non-distinctive nose (thankfully not as super-thin as the Passport nose).
Those are Ryo's facial features. The ones that matter anyway. You're not gonna go "what about his chin" when it's not really very distinctive and is really... just a chin.
Put it all together and... it's not quite right. It's like YSnet has the ingredients but didn't follow the recipe exactly. But the wholesale changes/removal of detail you're suggesting are not the answer.
Unless we want to play as Ryo Astley.