UPDATE: This appears to only happen when crouched. I assume it's following the head movement properly, it's just too subtle to pick up viewing from 3rd person. It makes sense in this way, but still feels very awkward with little control.
The current compass is different from ARMA 2 and does not illuminate. Using the head torch with the compass displaces the light from the head torch away from the compass. This can be remedied by using free look, but creates an awkward effect. It would make sense that the head torch would illuminate the center of attention. This does not happen with a splitting axe, or SKS rifle in hand. {F30278} {F30279}