The one with the arms adjusted (I'd say on the right but I get left and right confused) looks more natural to me as well.

But here I want to add a bit of info about the arms length, both me and my daughter are short, 5'2", and have shorter limbs.

The bend in my arms fall close to my waist but my daughters upper arms are like Toni's in the left image.
This surprised me but her arms are just like that. :)

Let me introduce you to my multiple personalities. :)
     BluEcho...Faery_Light...Faery_Souls.