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)
Update by [Minecraft] 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.