Opened VRChat and joined an instance with a significant amount of people. World and avatar volume is not affected, but voices sound significantly muffled despite no adjustment to audio settings, and voices of players who are directly in front of me sound like they are becoming behind me. Spatial audio feels completely broken.
Restarting both VRChat and SteamVR does not fix the bug.
I already struggle with poor spatial awareness due to a health condition, and this update makes it far more difficult for me to play comfortably; I am completely unable to tell where people are standing relative to me now and it is very disorienting.