Circle 3 costumes like Highlander costume and Quarrel shooter costume are only for circle 3 characters?
Yes, you need to reach circle 3 to wear that clothes 
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Yes it is. This is due to those costumes gives you different graphic for stances and 1 of the skills.
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I feel sad, because I really wanted Highlander C3 costume but Iām Barbarian C2 now.