The Witcher 3's current-gen update arrived back in December and caused quite a stir. Largely because of adding a slew of new bugs to the game in addition to several new features, a new quest, and improving the game's fidelity. The Witcher 3's ray tracing didn't improve anything if enabling it caused the game to crash, and improved textures were hardly noticeable if its frame rate slowed to a crawl.
After a little over a month, CD Projekt Red released update 4.01 which fixed many of the bugs introduced in 4.0. Now that the dust has settled, CDPR is now looking into further performance improvements that will bring The Witcher 3 up to where it was initially intended with the current-gen update.
Over on the CDPR support forums, a community manager laid out the priority issues currently being investigated for future patches. Top of the list is CPU core utilization and DirectX 12 performance, both of which will provide improvements to the PC version of The Witcher 3, but CDPR is also looking into performance on Xbox Series X and PS5. CDPR has received reports that the game actually has decreased framerate in Performance Mode on the current-gen consoles compared to Quality Mode, which isn't how those modes should work.
Although ray tracing no longer causes the game to crash, there are still some issues as the current-gen feature causes "lighting leaks," and shadow "popping," depending on the camera angle. Horizon-based ambient occlusion is also being investigated on PC specifically.
Some players are noting the Battle Preparations quest isn't working following update 4.01. Prior to the previous update, some players couldn't interact with Avallac'h, and after update 4.01, he still doesn't have any dialog options. CDPR is still "working on the underlying cause and steps to reproduce" the bug, which will hopefully get squashed soon.
And as always, CDPR is investigating crashes to further improve The Witcher 3's stability.
Although not a bug per se, CDPR is also looking into an issue where several in-game character models received realistic genitalia. CDPR noted that a number of community-sourced mods were rolled into the current-gen update, and one of them gave the Crones full-frontal nudity. CDPR will get that "fixed" in an upcoming patch.