In the polygonal cutscenes none of the characters feet are appearing. The models legs end at the angle and it looks like the are floating a tiny bit off of the ground. Its is a very minro issue its is just really weird. Anyone know what going on?

That's just how it is

It's called 'character design'.

They don't have feet.

It's how they're modeled, and it did bug me a little bit before I got used to it. Legs taper off into not-feet, similar to how the characters' "feet" in Journey appear.

First time I played the game I thought their feet were clipping through the ground.

Yeah, it's not great for people with foot fetishes I've found.

It is meant to be like that?

Someone took art lessons from Rob Liefeld, it seems.

Localization outfit 8-4, who worked on Fire Emblem: Awakening, had a chance to speak with some of the game’s developers at Intelligent Systems. One of the questions they asked them was why the characters in Awakening have no feet on their 3D models.

The game’s art director, Toshiyuki Kusakihara, explains: “The idea was to add a unique sort of deformation to the characters. As for why it ended up like this… At the start of the project, we weren’t entirely sure how many bones and joints we’d be able to use in each character model.”

Kusakihara elaborates: “As it is now, there’s a joint at the knees, and then there’s nothing below that for the ankles and the feet. This makes it a bit easier to apply animation to models as well. We found out afterward that, with the 3DS, we had more than enough CPU strength available to flesh out the models a bit, add real ankles and so on. We were like "Well, if there’s a next time, maybe there’ll be more ankles…’”

Source: Siliconera

I just found out about this while listening to this week's 8-4 Play and I have to admit, after like 100+ hours of Awakening, I never noticed.