1. Join world.
  2. Someone new joins the world after you, person is not blocked and does not have you blocked.
  3. New person that joined is not visible to you, has no nameplate, has no audio. User still shows in the "In Instance" list. All users that join after you join are also completely invisible.
  4. Rejoin the world, users that were previously invisible are now visible and have audio.
Confirmed with others on build 1621. Only tested in The Great Pug, so not sure if this is world-specific. Issue was remedied by going to live or build 1610 (steam-audio-beta).
Logs were provided to VRChat support as requested by a staff member in the #open-beta-discussion channel, to preserve privacy.