Visual artifacts / some sort of visual noise around characters & villagers

I'm not sure what the exact cause of this is; I pray to god it's not some AI something or other; but I've noticed every time I launch the game my player model will have these blurry bits and chunks around their body and face while they walk up to sit down. standing in the hub city, I see the same weird blurry nonsense around villager's faces as they change expressions

I'm not sure if there's a setting causing this (if so, I'd like to turn it off) or if it's a bug, so I'm making a post