The VisualDamage overlay seems to be broken for different users, sometimes. Personally I have not been able to reproduce this issue, but several people are sending me messages on discord reporting this bug as it occurs in my worlds that use the combat system, like Murder 2, Murder 3, and Enigma Escape. It also occurs in other worlds that use the combat system, like the evolvedant bomb defuse.
Here's what I can gather about this bug so far:
-Happens on both PC and Quest
-Doesn't happen to everyone, not sure of the exact conditions that cause this.
-For those who this effects, it doesn't go away on its own
-Is not solved by creating a new world instance
-Is not solved by restarting the game
-Is not solved by clearing the cache and re-downloading the world
-Uses custom visual damage prefab, if the world has one
And if anyone has info to help reproduce this that would be super helpful.