I still maintain that this is something with the aim-offset and from what I’ve seen it is tied to the player’s skeleton. It seemingly has a 50/50 chance of happening any time you load into the game, whether it’s at start or being killed.
Loading in again seems to be the only way to attempt to fix it either by relogging or dying/removing bracelet. It probably has something in common with the bug where cloth/hair physics will stop working on a character - and that appears to have a higher chance of happening if you adjust the scale of your character during creation.
EDIT: I’ve been meaning to link a screenshot of how the character model looks when this bug happens but admittedly it’s drastically stopped how often it will occur lately, and it illustrates why I think it’s tied to whatever script or blueprint they have for aim offset having a chance at breaking upon character load.
Even in first person the upper body will still move with the camera but when it happens, this is what you get. Normally I play in third person but have a habit of going into first person when loading the game and doing a quick look down.