Hey!
It seems more stable with the steam overlay turned off, but I still experience crashed, all though not as frequent.

@razazel
It's happened when leaving the editor, while loading the main menu, and on a escape tanoa mission, happens quite a few times.
I tried bringing up task manager on 2nd monitor, and that didn't show anything off about ram usage, but from the wiki page i might try out steam overlay, and i am currently about to update to the newest nvidia driver. I tried verifying 2 times and then I disabled all mods and did the reset of all the launch parameters, and when it kept doing it i decided to un-install through steam and download and install again. Problem still ocurred after that.
I will update probably later tonight or tomorrow if the problem continues.

If I were to pitch in, I have had this issue on King of The Hill servers, zoom seems to be possible though, just requires you to spam the zoom buttons. Same with the sniper scopes that allows zoom, dms, khalia, lrps etc.
Same problem with vehicles such as tanks, AA tanks, APC's, MRAPs, anything with a turreted scoped. Also happens in commander view.

@Jawsh I checked the launch parameters in steam, where I had them set up before the launcher was added, it looked fine there, but there was a single "-" in the end of the parameters, but nothing else was placed wrong or in more places.

I just added two new pictures, showing how it seems to be working, or rather bugging out for me, note the view distance + object draw distance, seems to be related.
I tested on all ranges, and the buildings literally changed their appearance when I stood in that once spot, and changed my object distance.

I can see it on your picture, but I just had a game on KoTH where it was the same as in the first picture I posted, sadly.

I am sure you wouldn't be able to see someone move on the stairs.

If you look at the office building next to tower 4, you can't look through the windows along the stairs, which is a common place for people to sit in.
That is my "issue" with this, because when I started playing Arma a year ago, back in april '14 I could sit everywhere in Kavala and look through all windows without them having a blurred out texture.

PS. I appreciate your effort in trying to help :)

I have tried with everything on Ultra, still no difference.

I just took the screenshot while I was on KoTH, but it doesn't matter whether I'm in the editor or any multiplayer game.

well, everything is ultra already.

*not an engine bug, visual - environment. Sorry for the inconvenience.

This has happened in the campaign for me as well, and my view distance and view distance for objects is set to the same.
this has only happened once in the campaign and might just have been an odd occurrence.
But could sound like it's an game mode issue.