A character who is not stealthed, as viewed by others. I confirmed with the other players around that they were all seeing the icon and transparency effect.

A character who is not stealthed, as viewed by the player. Meanwhile, I thought everything was proper and normal.

Toggling stealth on and off a few times didn't seem to fix the problem as viewed by other players, but relogging did. I've seen this bug affecting a few other chars, but I didn't realize what was going on until it happened to me. Posting this with the hopes that people can figure out a pattern to what is actually causing the effects to get stuck.