My free company had a laugh and a number of lewd things to say about this one.

Date & Time:
Around 6PM EST, July 3rd

Frequency:
Once (Did not reproduce)

Character Name:
Rail Tracer

Race:
Au Ra Raen ♀

World:
Excalibur

Class/Level:
56 Scholar

Area and Coordinates:
Dravinian Forelands, 14 32, Instance 2

Party or Solo:
Solo, had Eos and chocobo both summoned

In-Game Time:
Didn't pay attention

Steps:
I noticed it when I stopped flying through the area on my grand company chocobo and landed on the ground and dismounted. The item not displaying is the Orthodox Longkilt of Healing, glamoured to look like the Flame Elite's Loincloth. I asked a friend to come and see if he saw the bug too, but everything looked normal to him. Reequipping it did not solve the problem, nor did switching classes. I had to log out to revert it back to normal. I should also say this is under DX9, not DX11.

Pictures of bug: