In the Options area of the Skin Parameters rollout is a new checkbox, labeled Constant Cross-Section. When this is checked (the default), the cross-sections are scaled at angles in the path to maintain uniform path width. When this is not checked, the cross sections maintain their original local dimensions, which causes pinching at path angles. The unchecked method is the way cross-sections were handled originally. Note that acute (small) angles of the path can cause problems when this item is checked.
You can now see the wireframe structure of the lofted rectangle, whose cross-sectional sides remain parallel right up to its corners.
Note: Make sure the color assigned the loft object is easily visible. Change it, if necessary.
When Constant Cross-Section is unchecked, the corners become pinched.
Acute angles can cause problems when the cross-sections formed by the path steps intersect at the corners. You can mitigate this either by avoiding acute angles, or by reducing the path steps.
At a skew of less than 100, the acute angle still works because the path cross-sections haven’t intersected.
At this angle, the path cross-sections intersect, causing problems in the mesh.
The cross-sections no longer intersect, and the corner is clean.
You can see that, when creating straight-edge molding for architectural modeling, and such, you can avoid mangled corners by simply reducing the path steps to 0.