“Huge realistic open world: Majestic castles, vast fields, all in stunning high-end graphics”
The above is the first bullet point on the PS advert for KCD on PS4. To me, it constitutes design intent. Design intent establishes bug vs poor design (eg ugliness).
Having popins fail to render a building, a shield design, clothing, a head, etc when you are in close proximity is inconsistent with the design intent of “stunning high-end graphics”. That makes the current state a bug. It’s a bug that was introduced to deal with a different problem: