During the festival of the lost which forces you to wear the event mask/helmet to earn candy, it also has the effect of overriding the hood on all class item capes to make the mask fully visible (and to stop clipping issues on the bigger masks i assume).
If the functionality already exists to hide the hood on every class item when very specific helmets are equipped (Thy Fearful Symmetry, from the 30th anniversary pack being another for example), then why isn't there the option to disable the hood for any helmet, just like you can toggle whether you're helmet is on when you're at the tower or in a cutscene.
-
A, they are cloaks not capes B, Hoods are part of Hunter identity, without them they are just Titans wearing a cape