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I noticed before I log on to my Atlantica Online account, there was a patch update. And I notice that there was this new feature, that when you saw some player who is battling a monster, he turns into a cocoon like figure, instead of the previous one who you can see the actual player fighting the monster, and has the double crossed swords above them(it still has the double crossed sword above them up to now). Did you like this new feature which replaces the previous one? I mean the cocoon like figure going on battle against monsters?
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I'm not sure about this but if you're talking about the appearance of a battle from an outsiders view, it's a setting in the game that can be changed.
System -> Settings -> Graphics -> Character Setting -> Battling Avatar
If this is not it, just ignore this answer completely!
Take time to smell the flowers!
I agree with the post above. It is your settings for either the battling avatar or the one for normal avatars. In any case hope it has resolved your issue. Yes, i noticed a few changes as well after the official release patch. And i believe they released this one because they need to prepare the game engine for new contnt,. New classes, new places to explore etc.