Alice's head is shaved and her eyes appear tired and slightly out of focus, with what appear to be black tears, dirt, or makeup running down her face. The rim of her eyes are puffy, as though she has been crying.
The Straitjacket is a single white piece of clothing, which resembles a dress. The upper half has been tied with white and brown leather belts, which make Alice unable to move her arms. The jacket is worn in such a way that Alice's right shoulder is exposed, and its bottom is loose, allowing Alice to walk around barefooted.
Like the London dress, the Straitjacket lacks Hollow Yves. There are no replacements to the bow's usual location as the dress has belts that tightens it from the back.
Despite that it only appears in Alice's hallucinations, it is confirmed that Alice did wear a straitjacket in Wilson's casebook.
It is only available during the Rutledge Asylum cutscene in Chapter 5.
It would be almost impossible to effectively restrain a patient within a straitjacket (either Victorian or modern) large enough to expose a shoulder through the collar.
The straitjacket's unrealistic size may have been a conscious choice by the designers (to emphasize the asylum's lack of resources, or how "small" Alice feels in her own mind). Alternatively, it may have been chosen for aesthetic reasons.