I've restarted the game lots since the problem started. I reckon I'll just stop playing until it's patched, it's nearly unplayable. It literally was unplayable with a character with the trait of 'runs faster', he would get from one end of the screen to the other in 3 seconds with dash.
Do you have a world file where this is happening? I have heard the reports from some folks updating, but can't duplicate it. You might try installing from the 1.2 installer just in case something is off there. And what OS are you on?
Right now we have 0% chance of fixing it because we can't see it, it's been very temporary so far for everyone that's mentioned it until now, etc. Hopefully it's just a corrupt install!