I don't think so. First, there are no werewolves around so that nobody can turn you in a werewolf (the wolfish snowmen aren't werewolves). Second, there is no werewolf body or head in the "object database" in the game so that you cannot be shown as a werewolf by the game.
Perhaps, some extension implements werewolves. I don't know. Plain Morrowind does not implement them.
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My name is Demon\'s Last Day. Yes, the last one.
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