I was neutral about the other graphics updates when I first logged in yesterday. Then I entered my house... The lighting changes in player houses looks absolutely terrible, to the point that I no longer enjoy even being in the house I spent a year designing.
It's the harsh shadows and textures you mentioned, eapecially on textured partitons and wallpapers... but worse. There is an overall hazy look to everything. The best way I can describe it is that it looks like a vacuum bag exploded in the room and everything is covered in dust. This is especially bad in my bright (lighting 5) medium, where half my walls and furnishings are dyed pure white.
I play on PS5 and adjusted every setting I could but nothing helped. The closest I could get to getting rid of the haze was upping the gamma setting, which I have never had to adjust before. Increasing to max helps a little in the house but it's way too bright everywhere else, and certainly does not look good in the other rooms I've done with dark lighting. I also tried adjusting PS5 screen output settings such as RGB amd HDR but nothing made a difference to this.
There are additional color problems between objects. For example, I have a white partiton next to an open partition, both pure white. The open partition is several shades darker than the white partition now.
Pure white leather sofas look dirty grey now, with a nasty pixelated texture along the bottom border of the couch.
The mog station gold walls now look like yellow rust instead of smooth, shiny gold. They look absolutely nothing like they do on the mog station image.
The bottom line for me at the moment is that all 8 of the various rooms I've done look so ugly to me now that I never want to enter them again. Player housing used to be the most enjoyable part of the game to me and for the last day I've just been trying to ignore it completely. I was hoping it was a PS5 issue that I could change or a pending update to older zones or something I just had to wait for, but it seems over the last few days there are several posts about this.