The Encanto filmmakers essentially debunked a theory about Camilo Madrigal, which is unfortunate since it fit Abuela Alma's story better. In Encanto, the Madrigals get magical powers that somewhat fit with their personalities. For instance, Luisa Madrigal (Jessica Darrow) is the family's rock, taking on everyone's burdens, so she gets super strength. On the other hand, Camilo Madrigal (Rhenzy Feliz) is a prankster, so he gets the power to shapeshift into whomever he likes. However, Mirabel Madrigal (Stephanie Beatriz) doesn't get magical abilities, which causes a rift between her and Abuela Alma (Maria Cecilia Botero and Olga Merediz), who just wants to keep the family's magic going.
In Encanto, Mirabel helps Abuela Alma see that she's holding the family back. Because of Abuela Alma's expectations, the Madrigals are constantly forced to suppress their own wants and needs. As a result, Luisa gives up all self-care to put the family's and the town's burdens on her back, which isn't a sustainable lifestyle. And Isabela (Diane Guerrero) resigned to creating flowers when she really wanted to make plant life that had an edge. In the end, Mirabel shows Abuela she lost her way, and Abuela realizes Mirabel will help her lead the family in the future.
A debunked Camilo theory would've fit the Abuela Alma storyline much better. One of Encanto's directors, Jared Bush, enjoys interacting with fans online and answered a lingering question about Camilo's true looks. One viewer wondered if Camilo would look any different in the future if he lost his powers, but the director shot it down (via Twitter). "I think that would be impossible because when the house fell, everyone lost their gifts and Camilo’s appearance didn’t change," Bush said. The director noted that the filmmakers once considered the idea, but it ultimately wasn't included. "It was a nice idea at the time though," Bush said. The director's response makes sense, but Camilo's looks changing would've fit much better with the Abuela Alma story in Encanto.
Though the Madrigals try to live up to Abuela's expectations, Camilo seems to get out of it. The Madrigals seem to bend over backward for Abuela Alma throughout the movie. Luisa stressed herself out, and Isabela can't be who she truly is. But Camilo appears to go around pulling pranks and having a good time. Yes, he uses his powers to help others, such as taking the place of tired parents to rock a baby. But he doesn't appear to have the weight of Abuela's expectations on his shoulders. If Camilo turned into someone else after he lost his powers, it'd show he was constantly someone else for Abuela Alma as well.
It makes sense why the film avoided the Camilo Madrigal storyline change. There are a lot of Madrigals in the family, and Mirabel even has to do some lyrical gymnastics in "The Family Madrigal" to explain everybody. So if Camilo turned into someone else when he lost his powers, the film would have to spend time explaining it, which could cause confusion. After all, Encanto is for families, and young children could be left worrying about where their favorite shapeshifter went.