Yes, because in Daggerfall it describes Bretons as having an Elfish appearance and pointed ears, and in ESO they have visibly pointed ears.

Can Bretons have pointy ears?

It's great that they can have pointy ears! Having said that, their faces are too round for someone with elven ancestry. Even with maximum angled face and an elongated chin have rounder, Bretons still have a rounder face than an average Imperial.

Are Breton man or mer?

Bretons are practically a "breed" of Nedes, selectively bred with High Elves by the Direnni who'd enslaved them and over many generations became different enough from other Mannish races that they get a different name and developed a unique culture. They're still essentially men, not half elves.