I went on an old world and found this. It was glitching in an out of red and green, and when it stopped for a second, it had no face details.
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If you add armor to a horse the horse texture corrects and all llamas around gets the armor blended into its texture. Changing the armor with a different type results in flashing armor alternating between the different colors this also applies to the llama

The horses seem all good to me, it is only the wandering trader llamas that are bugged in terms of their texture

The horses started off fine when I signed into the world, but progressively got worse as I continued to play. First, my horse's armor was flickering rapidly, and the horses spotted texture wasn't showing (it was a grey horse with a black back, but it was just showing up as a solid grey horse). Then, its armor stopped rendering entirely leaving me with a plain gray horse, and then its entire texture turned blank white a beige outline where the saddle was. I opened a new world and spawned some llamas and horses, and they had the same glitched blank texture.
Edit: donkeys and mules seem to be unaffected and render normally

Yeah, all the horses and llamas go crazy colors depending on what they’re equipped with. Sometimes they look normal but will change color rapidly.

My son has started a bunch of new worlds and tried his old worlds and this is present. The game is totally unplayable since the last update. It lags, when he performs an action it can take up to 10 seconds for anything to happen to the block/enemy/merchant he uses.

This also affects Llama's om flat worlds

I have found that textures on llamas can glitch into creeper textures

I'm also having the same issues as the red/green llamas as well as the black horses. Lately the llamas have been the beige/brown blocks but without actual textures or features. Also on Nintendo Switch and have re-downloaded the game as well.
This issue should be resolved in the 1.19.21 Hotfix - please ensure that you are testing on the latest version when it becomes available before reporting back on this issue.
The horses are spawning solid black with no details or textures at all and when equipped with horse armor they turn red and green like the llamas