Decal Draw Issues

Why is it filtering out the blood decal based on distance, and how can I fix it?

GTX 980
398.36 and 399.07 (happened with both drivers)
Clean config files (deleted and let game create new ones)
Verified files (Steam install)

Any help appreciated!

[edit]: Tried reinstalling all the dx/vc/dotnetfx redist in the BL2 directory, no joy. Also noticed this happens with some (but not all) dirt decals, and some of the shadows too. Not sure if it’s just a vanilla bug I never noticed before, or possibly a driver issue?

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