Just a theory.
I last played OB, oh.... a few months ago, maybe. Popped the disk in today and was greeted with a popup window stating that my settings had been sent to 'Medium'.
OK.... That's new. Don't recall ever getting that window - and why Medium settings?
So I immediately started checking those settings in the options window that appears before the game starts (what is that called, anyway?).
Made some changes, started up a new game, and noticed that my settings hadn't 'taken'. Stuff looked just pretty bad - not terrible, but certainly not as good as it had the last time I played.
I went through the tutorial dungeon anyway, figuring I'd see about changing things up later. But eventually I started seeing those yellow exclamation point triangle things (texture error image, I guess). They appeared anywhere there was any harvestable stuff (mushrooms, in the tutorial).
The only thing I can think of is, in the last few weeks we did an Nvidia driver update. Is it possible that update is causing the game to re-check our settings (and give us a bogus "Medium" setting)? And possibly mess with textures, somehow?