This bug occurs predominantly when fighting Falmer, but I'm not sure if it is exclusively when fighting Falmer. Anyway, when I am in battle with a Falmer and I get hit by them, I will become invisible 70% of the time and then pop back into sight. This also occurs when I absorb spells sometimes with Atronach, especially when I absorb spells that I cast (another lovely glitch).
Anyone else experience this bug, and more importantly, does anyone have any idea what caused this bug? I don't remember ever having this problem prior to 1.7, was it that patch that introduced it or am I mistaken?