There are those who associate nudity with the threat of child abuse and exploitation. However, moral panic leads to claims that "exaggerate the seriousness, extent, typicality and/or inevitability of harm" For example, if nudity always invites or incites sexual behavior, all-age clothing-optional beaches and resorts in RL would be closed.
Some people object to even clothed child AVs. Is this also a result of moral panic? Maybe. But it could be a mental health issue. An emotional state of fear, disdain, aversion, or prejudice toward children or youth is known as paedophobia. It is a condition diagnosed and treated by psychiatrists. There is hope, people. There is hope.
But, for now, these folks should stay away from SL. Some lurid facts about that place. If someone is at least 13 years of age in RL, they can use Second Life with some restrictions. You could not only encounter teen AVs in SL, you might even meet some RL teens. SL does have a policy about age-play, but says, "Merely having a childlike avatar does not violate this policy. It is not our intent to banish childlike avatars in and of themselves". Isn't it ironic? On this issue, SL is more open than some are on Open Sim.
In the past, simply stating these facts about SL has resulted in my being stalked in OS and threatened by, I think the clinical term is, cuckoo-bananas wack-a-doodle cray-crays. The truth is that my regions in OS are for adult AVs only. I have nothing against child AVs, as such. I just prefer to avoid dealing with unbalanced moral crusaders.