What you have described is a feature. The default armor/graphics for a player, aka marshmallow man, is intended to reduce load times. Otherwise you have to stay in the black loading screen for 5 minutes or more until everyone's armor is fully loaded.
What I am referring to is that a particular armor (Ark Pedator) for a particular sex/race (male human) appearing as PERMANENTLY that of another armor to other players. Make no mistake. Unlike the marshmallow man feature, this bug is permanent even in coop missions. And you yourself wouldn't even know it unless someone else tells you.



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