Personally, we do not need anything but fantasy core 4 races: to make it simpler
Human,
Elf,
Dwarf,
Orc,
Being slightly small(halfling, gnome), can be a trait with bonuses and penalties:
I.E:
small(er):
drop weapon damage die by one step or cannot use Heavy weapons(whatever works)
limit on grappling lowered by one step as normal mechanics.
-5ft move speed(smaller legs)
+1 AC(smaller target, more difficult to hit)
Large(er): as half-giant, goliath, maybe even Orc
increase weapon damage die by one step.
+5ft move speed
-1 AC
Aasimar, tiefling, shifter, warforged, dhampir, dragonborn, changeling, can be just templates that add to core 4, so everyone of those are different to eachother.
It can be 1st level feat for power budget sake, maybe with 4th level feat with +1 ASI and something, something if that is too powerful to gain at 1st level or going out of bounds for a full feat at 1st level.