you can't have two files with the same name in the same folder - so those files you've mentioned, certainly have different extensions, and without noticing that don't mess with them. don't try to replace them with reshade either, that won't work. reshade has to be named d3d9.dll for this game (i assume Granado Espada). and unfortunately, according to some older post here, it doesn't work - someone else had similar experience, but he said that every player and npc was invisible. your screen suggests something slightly more complicated - all models got stuck in a single place, reset to some default pose.
it's certainly weird, but glitches happen in some extremely rare cases. perhaps this game is one of them. if crosire won't have time to debug this though (it's free to play, so you can pray that he will), you're out of luck.