It happend to me last night, then stopped. Now its been a few hours with a couple game restarts. I am currently in the Aldermi Dominion and it happens worse around Mathiisen Waysrhine.

The local quest is about enraged animals and you need to calm them. However, everything attacking me I can't see. I have to /reloadui to see the enemies i want to engage, or to see which enemy was invisble when i walked by.

Its not game breaking, but it is extremely irritating and has resulted in quite a number of deaths. The /reloadui screen sometimes isn't fast enough and I gain control of my character again after its too late, and im dead.