Baldur's Gate : The Sword Coast Chronicles : NWN2 Persistent World

If you have displacement active on you, and you hide in plain sight (or just hide, really), the glowing white light from displacement remains visible, giving away your location.

Now, I understand it may take some time to get this looked at, but will it be addressed or should I just RCR to a different spell list?

Tested and confirmed. The little white circle at your feat gives away location when displacement is active. Improved Invisibility doesn't have the white circle, even after you have attacked, so assuming it's as simple as removing the white circle. Thanks for the bug report!