Shadows on dropped items don't rotate or display correctly

I ran a couple of searches to see if this is already reported, but couldn't find any specifically addressing this (found a few for the weird shadow issue, but not this one.)

Shadows on items used to rotate (I think) with the item, but are now static. In addition (and I'm not sure if this was ever different than how it is now) The shadow for everything is a square, even "flat" items.

To reproduce, throw an item onto the ground.