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The last I knew, the game only reads the list of UI skins available when the client first starts, so yes, you must restart the client for the skins to be listed and for the larger dressing rooms to be applied.
I know when I worked on my skin the last time, if I made a change I had to exit the client completely and restart it before the change would show up. Logging the character out and then back in did not seem to work.
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