Raytrace bounces also appears to be controlling the number of GI bounces.  This means that, with a setting of 1, a given ray will touch one polygonal surface (like the character's skin) and then go on to be reflected to one other surface, and then stop.  in other rendering apps, a very small number of GI bounces typically results in uneven application of GI light, leaving you with a blotchy image.

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