I normally run in women's short running shorts, or capris or leggins when it's gets colder, and women's t-shirt or tanktop with a good sports bra and my forms. Even with a close shave, I still have a heavy beard shadow, and my hair, while long and in a pony tail, is thinning in the front. I run on public bike and hike trails, usually early in the morning, but most of the other people on the trail have gotten use to seeing me run like this. A few weeks ago I ran my first half marathon doressed like this (finished 7th out of 41 in my age group).
I've not had any issues while on my training runs or during the race.
As for knee problems, I believe that as long as you run properly with a good stride, there will be no problems with knees. To the contrary, running properly can strengthen bones and joints. A few years ago I had arthritus in my knees. Last year I had a fall at work and injured one of my knees. The x-ray of my knee showed that the arthritus had disapeared, and I've not had any pain in my knees for a couple of years.
