As you can see, while resting on the tavern’s bed my characters’ head got smaller and was always fixed in the same, weird position. I have yet to try and replicate the bug.
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I don’t think this is a bug. My character does the same thing. I’m not sure about the head shrinking but the “locked head angle” animation is ghastly. There are other times in the game where your character’s head gets locked into odd positions that don’t match the body.