I am confused if this is supposedly a bylaw or criminal.
Regarding clothing in 2004-2005 era a Brampton massage parlor was cited by bylaw officers for violating the opaque clothing bylaw. The massage parlor won since being naked is not against criminal law. This is very old and some links no longer work but I reported this at
https://www.sexworktoronto.com/massage/massagecontents.html
Now under C36, although I may be out of date but against escort agencies etc, the sexworkers won 3 cases and lost one at the Superior Court of Ontario level. As far as I know, the Crown has never appealed to the Supreme Court of Canada.
Remember, the prior law against incalls (bawdy houses and agencies - living of avials" was firmly struck down by the 132-page ruling of the Ontario Superior Court and upheld by the Supreme Court. It made clear under the Charter of Rights that the law violated the safety of persons' provisions since being illegal made it clearly more dangerous. Outcall was legal under the old law.
I realize this is BC, not Ontario, but the arguments should be the same.
When C36 was enacted, the police in Vancouver, Toronto and Montreal issued press releases basically saying there would be no change in enforcement basically means only going after underage and real trafficking cases or illegally in Canada. I am less updated on the BC situation than I am in Toronto and Montreal. So others here may have better information.
The C36 arrests were in smaller, more conservative communities in Ontario, not Toronto. Just like Richmond may be more conservative than Victoria. I recall the days the many incalls in Sanach (sp?) were warned by the Sheriff (I didn't realize you had Sheriffs) to move to Victoria after Saanich wanted to crack down - this was pre C36 which was the result of the prior law being struck down since violated safety of persons in the Charter.
In the early days, the agency incalls were welcomed in Victoria, including one on the main street downtown. Police visited, but only to be sure the gals had paid their annual license fee were adults, etc.