Thanks for the response! As I said it only occurs when using shaders with sharp shadow enabled, and from my experience the bug always happens as long as someone has a 3D item (doesn't matter if it's freeplay or multiplayer). I'm playing on 5.44 as well. In the imgur link I'm using a custom shader but the issue still persists as long as the shader has sharp shadow. However I've noticed that after disabling then applying the shaders back the issue isn't present but reappears when a new round starts (ive had this happen on freeplay and multiplayer). Here's my custom.cfg since it didn't let me attach the file:
#Automatically generated from Setup. Don't edit
nick "uke"
mousebuttons "1"
backgroundclick "0"
volume "33"
musicvolume "0"
voicechatvolume "128"
fullscreen "0"
autosave_rpl "0"
rememberrules "0"
framerate "60"
shaders "1"
fluid "1"
reflection "1"
softshadow "1"
ambientocclusion "1"
bumpmapping "1"
raytracing "1"
noreload "1"
width "2560"
height "1440"
beginner "0"
newmenu "1"
languagesteam "0"
language "data/language/english.txt"
chattoggle "96"
chatfocus "0"
voicechattoggle "113"
particles "1"
trails "1"
hair "1"
hairquality "0"
obj "1"
bodytextures "1"
fixedframerate "1"
replaycache "2"
chatcache "3"
filesort "2"
worldshader "1"
effects "3"
matchmakerx "0"
matchmakery "100"
matchmakerhidden "1"
clanuipopup "0"
memsize "1"
highdpi "0"
keyboardlayout "0"
customworldshader "data/shader/Greyscale 1.inc"
autoupdate "1"
personal "1"
tooltip "1"
movememory "1"
chatcensor "0"
objshadow "1"
showbroadcast "2"
shout "1"
shout_default "0"
dismember "1"
dismember_default "0"
fight_alert "1"
fight_alert_default "0"
freeze "1"
freeze_default "0"
game_over "1"
game_over_default "0"
grading "1"
grading_default "0"
grip "1"
grip_default "0"
hit "1"
hit_default "0"
impact "1"
impact_default "0"
joint "1"
joint_default "0"
menu "1"
menu_default "0"
none "1"
none_default "0"
pain "1"
pain_default "0"
ready "1"
ready_default "0"
select_player "1"
select_player_default "0"
splash "1"
splash_default "0"
swoosh "1"
swoosh_default "0"
uilight "0"
menudebug "0"