Rest assured, I usually stop him before he does.
However yes, he just undresses.

[Something else come to mind related to this, and given how perceptive Ichigo-dono is-- well, not that he wants to conceal anything, either.]

Although, when he's in the midst of fighting that's another matter.

[He smiles the smile of a patient, but somewhat stressed, older sibling.] Muramasa has too many meanings attributed to the word 'undress'. And being in the form we are, he really ought to learn to be more careful.