Just to let you know that I've just come across the same bug with my kids on the Switch. They wanted to change skin and were getting super frustrated that they couldn't pick from the extended list in the skin picker. Thanks to this bug report though, I managed to get them both set up as they liked through the front screen skin picker, so the house is at least peaceful again!
The point is though, you're not alone with this bug!
Just to let you know that I've just come across the same bug with my kids on the Switch. They wanted to change skin and were getting super frustrated that they couldn't pick from the extended list in the skin picker. Thanks to this bug report though, I managed to get them both set up as they liked through the front screen skin picker, so the house is at least peaceful again!
The point is though, you're not alone with this bug!