It seems on this wiki often the Biography section simply contains a character's profile description or in-game "Personnel" data, as opposed to being actual biography (I just checked, English VC1 doesn't call it "Biography"). And then there are things that are partially in-game text but partially edited, which from a copyright/license perspective can technically be an issue (derivative writing).
I doubt the wiki would actually get into trouble for in-game text. Whereas if there are source book or art book text, those would be have a higher potential for copyright problems. There's a difference between documenting information found in a book, versus "plagiarizing" the text of the book.
I would suggest official in-game text (or other official/copyrighted text) be placed in <blockquote> tags (and identify where it is quoted from, so that people would only edit it to correct any quoting mistakes). The in-game "Personnel" text would belong in "Profile" but not "Biography".
"Biography" would be a main article section that is merged with "History" and/or "Story", and avoid direct copy (and shallow edits) of copy-righted text. Some characters, especially squad members that aren't central to the main plot, might only have "Profile" descriptions without a "Biography".
The <blockquote> tag is currently used on some weapon articles such as Lancaar. The css rules would add a background color for the blockquoted, whereas currently it only gets an indentation that isn't always very visually distinguishable.