I freshly spawned on experimental and ran to the nearest town after finding a stone knife and extra stone. Found the corpse of someone who jumped off a building. Attempted to skin and quarter with my stone knife and cancelled the animation to try and get rags off the body first. It was all ruined and then when I tried to skin again, it wouldn't present me with the option. I dragged all the corpses gear off the body and hoped it would allow me to skin it but to no avail.
Then for whatever reason I tried dragging my shirt onto the corpse and it didn't help. When I dragged the shirt back to my character the shirt equipped but was being displayed on the ground at my feet with the model that you see when it is actually dropped on the ground. The spot on my character where the shirt should have been was just completely invisible. Essentially just legs, arms, neck and head.
This visual glitch was happening in my inventory menu as well as my character in game. I ran down the road and encountered someone and got them to confirm that on their end my character looked completely normal, so this must just be client-side. {F31784}