Babies skin looks irritated and dry ...everyone does as they please with their babies and I applied lotion and breast milk on my kids after 3 days of birth and didn't have this problem anymore

Totally normal!
Just irritated baby skin.
The only thing that should be used is best milk.
Just think of it this way: the baby just spent 9mo in fluid. Now their skin is adjusting to life outside of fluid. Putting any kind of lotion on the skin before a month old only confuses the skin. Just wait it out, use breast milk if you have any, and to ease your mind,ask the pediatrician during your next visit.
But I promise - it’s just normal baby skin adjusting to life outside the womb.