No, it still works and always has. It just doesn't change your character by default, you have to open the !skins menu that comes as a dependency and select the skin you want to use from there. By default its the Engineer icon in top left corner, and comes as one of the "Make Blueprint" style toolbar buttons, or if you have InformaTron its inside of that.)
If you can't find any of these buttons, go to Settings -> Controls -> Search -> "skin" and it should show the current hotkey to open the !skins menu. If you don't see anything, one of the mods is disabled, and if you do see it, just set a hotkey and press it (Alt + S by default) and you can select your skin from there.
