This isn't the case if you're playing a pirated version of The Sims 4. But usually, once your Sim is done with those activities, the pixelation goes away. If you're an avid Sims player, you're well aware that the game pixelates when your Sim changes clothing, uses the toilet or showers.
The developers behind The Sims 4, which was released about a week ago, have implemented an anti-piracy strategy that just might work. Anti-piracy efforts can sometimes backfire, either upsetting the gameplay of those who actually did purchase the game or the efforts are not strong enough, and pirates learn how work around the restrictions. However, dealing with piracy is a tricky situation. As a game developer, you of course want to dissuade people from pirating the game so you can make as much money as possible off your creation and also so people can experience the game the way it was designed to be played.
Whenever you release a new game out into the wild, pirates are always a concern, especially if that game is part of a beloved and hugely successful franchise.