[18:11:24] <Saintkoolaid> [20:10:04] <Saintkoolaid> Friend says "Look at my new shield. I painted it black." I see a black Large Metal Shield, but when she sends me a screenshot, it's this https://imgur.com/KUDfDzi
Confirmed using an alt, skin is not showing for other players. It will show for the player who has the item equipped though. It seems that if the player has it equipped before a player logs in(or is out of local), it will show as a normal LMS. If the player equips it AFTER the the other player is in their local, it will render properly.
3rd person view
Alts view