Every new fix brings new problems, and the latest video drivers released by AMD (Advanced Micro Devices) are no exception.
On the upside the 16.3 update brought many new features like twin Eyefinity displays, Vulkan Support (successor to OpenGL), and AMD XConnect. But on the downside it also broke Cycles rendering in Blender, the most popular open source 3D modeling program for virtual reality development, with a hotfix yet to be announced.
The problem was first reported to AMD at the beginning of April after Blender contributors determined it is not a program fault, with the bug seeming to only affect R9 class GPUs.
The bug looks like ‘banding’ (like the picture above) and if you see the problem present in your project, you need to roll back your drivers to at least 16.1. Hopefully AMD can fix this soon because VR headsets do not like outdated drivers, but a lot of developers Blender workflow requires them. If you are having this problem, please submit a report.