There was a fuss in the street, and the Dwarf tossed open the door to yell at the troublemakers, only to find that nothing looked the way it should.
Cara had been gleefully nullifying parts of the illusion as she went, looking for hidden treasures and the source of the spell. So random buildings all along the street, including the outside of the Inn, had returned to their actual appearance.
But more notably, so had a large portion of their population, and there were oblivious undead wandering the streets, unaware that anyone saw them as anything other than Dwarves.
If Rae wasn't laughing so hard at the chaos her sister had caused, she would have likely started a riot already by hunting the Undead who the locals believed were beloved friends and neighbours.
Going on a murderous rampage right now would probably be a bad idea, Rae realized. So, she stopped watching her live action drama and transformed into a humanoid to go find her people.