Item holding glitch - floats / hovers above the players' hand

When a player is holding an item, the item hovers/is floating from its intended position in the hand. This bug was first found in 1.6.0 on Windows 10 Edition and then rediscovered after the latest update 1.7.0

Edit: This has also been seen on android devices.

• Image from itsatrab (Twitter: @bart_ajax)

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^{Update by [Mojang] Mega_Spud (Jay Wells):}
It seems this bug occurs when one of the skins with non-standard models is used. To reproduce, try using a 'Jesse' skin from the Story Mode Skin Pack.