"Character Outline" option causes flickering on players and NPCs. Textures/materials are being effected by that. It started after server update (January 31). Tested it on PC and PS5. It flickers on both platforms.
For me aswell its frequency of the flickering it will continue until its fix or only play until it starts hurting for now we have to wait and hope it will fixed soon.
Just for posterity's sake, I'm here to confirm that, as of March 11th, 2024, it's still ongoing. Disabling the character outline as of today, so I won't know if the issue persists.