Using latest steam version.
Issue is that all cloaks are just floating models not aligned to characters at all. Looks particularly ridiculous on smaller races. Screenshot included.
I'm guessing it's related to something my computer has/doesn't have that's making this happen, using a low-mid end computer with Windows 10. Tried fully reinstalling Pillars of Eternity to try to fix the problem, updating drivers, no luck. Googling it shows lots of other people with the problem but no real solutions.