Ambient Occlusion OFF = odd ghosting effect when moving

Anyone else seeing this?

Setting AO to OFF, move around the act 1 town. It looks like in certain sections of the ground/level, there is a weird ghosting or reflective effect going on.

Easily seeable on a brand new character right in the camp where you start. Just pay attention to the ground as you move around

Turning on AO removes it. Unfortunately, AO also makes my system run super hot and slower.