I understand appearance editor isn't available for CC3 yet so if we need to change the appearance - the workaround is to use a CC1 character, edit the appearance, and then convert to CC3.

The problem is that the CC1 Base_Substance Avatars (CC1_Base_Male, CC1_Base_Female) do not allow wound decals to work. The moment you activate a decal on the body, head, etc. a gray box will appear. If you increase the scale of the decal, the box basically covers the body even further like a 'suit'.

So right now, for those of us who don't have access to the CC1 essential morphs pack (which someone said on the forums worked fine with decals) we are not able to use the appearance editor workaround at all.