Something like that, yes.

[He'd understand that part if he knew the kid's family, yes. But then they wouldn't be getting along as well.]

A prolonged transformation jutsu might explain any physical modifications present, although it would be a drain...there is an exceptional amount of chakra constantly going missing. Including that of a tailed beast. [Because if they weren't doing something with that creature's chakra then Naruto would still be able to access it as he did in the chuunin exams, he would think, no matter how tightly they've apparently managed to seal the creature within him.]