Simply register on Nexus Mods website and download the FX Begone mod (under 500kb). Drag and drop the files into your game directory, launch the game, and be able to continue without this game breaking issue; or hours of lost progress. Screw the game devs for releasing such game breaking update with literally no mention of this simple fix.
www.nexusmods.com
FX Begone (Full Vignette Removal and Modular Effects Options)
Removes a variety of visual effects including Johnny glitches, fall damage, zoom and scope pixelation, and drug effects! Modular options are available and I happily take requests.
www.nexusmods.com