Pokemon S/V is well known for being a rushed broken mess of a game. And the common examples of her being "ugly" are taken out of context during a cutscene and not how she looks for most of the game. The official art and official TCG art portray how she's supposed to look and she isn't bad looking at all. Gamefreak did not design her to be an ugly gremlin. The in game models are just not well suited to being displayed in "action poses" during cutscenes.

They are serviceable barbie dolls that are meant to be viewed from a distance while the player is traveling the world. People who talk about Penny being ugly are simply propagandists who believe Penny is some kind of hyper SJW and either didn't play the game. Or did play the game and use the bit where she makes some rude remarks toward Arven, (that he dishes back) at the end of the game to use as sufficient justification for hatred. The real reason people hate Penny is because they (falsely) see her as a tranny (wrong because she is a cis biological female in the game). And are hyper obsessed with shitting on anything progressive because they are fat nerds who sit in their parents basement and jerk off to cartoon animals/children and have no other goals for life. Blaming all their failings on trans and "da joos" for why they aren't in a better position rather than taking responsibility for themselves.

Also, I'm not trans. I am male. Seethe harder.