Update (2022.05.25): For a new updated method, look in the last section of the guide.

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Original method (SpecialK):

This method works by blocking specific shaders in game, preventing the mosaics from being rendered. If you find the mosaics distracting and you don't mind the "barbie doll" apperance, then follow these instructions to disable them.

In the Steam version only one of the main characters has her "parts" drawn beneath the mosaics, so other characters might look weird.

Unfortunately that issue won't be addressed by this guide, as it requires advanced UE4 modding skills.

This method should be considered as an alternative way of removing the mosaics. I strongly encourage people with more advanced skills to try to find a proper way of disabling the mosaics and restoring the missing body parts in this version of the game.

(1) Special K

• Search for it on Google
  Versions tested: 0.9.20, 0.9.24, 0.10.1, 0.10.2 . Try other versions if you're having issues.
  
  * Scroll down the Github page and expand "Assets" to view the downloadable archive.
  
  
• From the downloaded package you'll only need SpecialK64.dll. Extract it into the game folder Steam\steamapps\common\Seed of the Dead\SeedOfTheDead\Binaries\Win64.
  
  * If you're having trouble to find the game folder, right click the game in your Steam library and select "Properties>Local Files>Browse local files..."
  
  
• Rename the file to dxgi.dll

(2) .ini file

• In the same folder you extracted the dll create a new txt file and input the following lines:
  
  
  [DrawState.Pixel] b89c4c68=Disable c3ba4f3d=Disable
  
  
• Save the file as d3d11_shaders.ini
  * ATTENTION! The file extension has to be ".ini", NOT "d3d11_shaders.ini.txt"
  
  * Make sure you have "show hidden files" and "show file extensions" ticked in the File Explorer View settings, to confirm that the file has the correct extension. (Thanks Alan J T!)

• If you followed all the instructions carefully and did all the steps then it's done!
  
  

Follow this guide's instructions at your own risk. It requires a third-party modding tool, so if you experience any incompatibilities or issues with Special K and your system, you should try to find help in the related Steam group. I can't offer any support for it, sorry. Questions or comments, add them below.

It's a new method which uses a different modding tool (3Dmigoto) for adding custom body textures with a few more details, while also removing the mosaic censorship. It's preferable over the original method in this guide. Get it from the link below:

pastebin. com/0FLG88QG