Emulator

Game Name?

Pokemon XD

Game ID? (right click the game in the game list, properties, info tab)

GXXE01

MD5 Hash? (right click the game in the game list, properties, info tab, MD5 Hash: Compute)

cd2d31e8d0bf928ea72a9fa441bfc310

What's the problem? Describe what went wrong.

The shadows of the interior areas and battlefields flicker and shift around constantly. Appears to be an issue with clipping the shadows and layering them correctly on the environment.
Less visible in outdoor areas, but is very noticeable indoors, and it appears to shift as the player character moves around the area.
This did not happen on older versions of Dolphin, and happens on both Direct3D 11 and OpenGL.

What steps will reproduce the problem?

Starting a new game and when the first battle starts, it should be readily visible on the battlefield, with flickering, translucent shadows across the terrain.
It is also visible in the first area, and they seem to shift around the player character somewhat as he moves around.

Which versions of Dolphin did you test on? Does using an older version of Dolphin solve your issue? If yes, which versions of Dolphin used to work?

Testing on Dolphin 4.0 r9399, exhibits this issue. Using an older version does seem to fix the issue.
Tested it on Dolphin 4.0 r7064, and it does not exhibit the issue.

What are your PC specifications? (CPU, GPU, Operating System, more)

CPU: Intel i7-6700k, 4 Ghz
GPU: EVGA GTX 970, 4GB
Memory: 16 GB DDR4
OS: Windows 10 64 bit
HDD: 512GB SSD + 3TB HDD
Backend: Direct3D 11

Is there any other relevant information? (e.g. logs, screenshots,
configuration files)

Attached a short video of the environment shadows shifting as the player moves around the environment.
This is incorrect and the shadows are completely the wrong shape and size compared to the normal environment.