The Star Wars: The Old Republic video game has a mission called “The Face Merchants” set in the Coruscant underworld where Black Sun has been operating a similar operation. Though the technology back then seems way more archaic as it required invasive surgery from specialized droids/software to reform the faces of the criminals, the concept of altering facial appearances has at least existed in Star Wars aside from this one TCW episode.
Wild, it honestly sounds like something from a horror movie. Nice to see the idea explored a bit.