Your morphs or your figure are old, somehow - if the figure is labelled as SR1 or SR2 then reset the morphs from your order history, otherwise reset the figure, and install the new version.
Ok, it took a while but I went back to my order history and reset, downloaded and re-installed Michael 4, The Freak 4 and all the morphs for each. I also updated Poser to SR3.1. I restarted my computer, Poser, downloaded a fresh copy of M4, injected all the morphs and the arms are still deformed. I’m truly stumped!!!