Hey all, so I have seen that there is a similar issue with Mac and Linux users, but I haven't been able to find anything about Windows users experiencing a similar problem.
All of my characters capes float in the air above and behind them in game and also in the inventory screen. Drivers are up to date and all that.
Windows 8.1 (blerrrrgh!), DirectX11 up to date, exceed all system requirements. Nvidia Physx says it is at the latest version.
Image attached