It's not a cache issue, just restart the game. It will stop happening until it happens again. It also cause pre game commendation screen to load forever and some longer loading times. I've noticed that in every case it's happened to me, it's because I am in a game where someone else are invisible. It never happens to me unless I have someone on my fireteam or as opponent being invisible. And since it also happens in crucible and competitive and trials, you should think Bungie would prioritize fixing it. It happend in 2021, 2022, 2023 and it's happening now. "The game servers are struggling to render objects and information correctly, which causes the bug" but our cache and network connection gets the blame.

It happens even sometimes in the character preview that arms are becoming invisible, even witch cleared cache before

So I cleared my cache and the invisible characters and weapons went away. For about a day and a half. Now, when I’m done with a matchmaking mission, where the other two guardians were invisible and my weapons AND crosshair were as well so I had an extremely difficult time aiming, the other guardians don’t show up at the screen where you give commendables!! The “hang on a minute” icon kept on spinning. So Bungie is now locking us from raising in rank. Because you know you must give commendables to raise in ranks. Wait! Iv’e got it! Let’s add more -blam!- to Eververse! That should help, right?

https://help.bungie.net/hc/en-us/articles/360049199051-Clearing-the-Console-Cache