At this point he's the monster with Ygor's brain, right? Maybe he's shrinking to fit.
I've always been slightly disappointed by that, by the way. That, basically, the original monster was killed when his brain was swapped for Ygor's. Poor guy.
As for the name, I've always been a little fuzzy on just what name is trademarked. In the original films, it was always "The Wolf Man," which is why I suspect movies like The Monster Squad
got away with calling him "Wolfman." And then there's Nicholas Pekearo's novel, The Wolfman
, which has no connection to Universal.
To make it even more confusing, the promotional materials for Universal's remake all say The Wolfman
I'm not sure how it works.