If you enable shaders through Oculus the lantern appears floating in the far distance of where the player is looking.

Same problem. This happens only when the lantern is equipped.
Edited: I found out that this problem can be solved by disabling entity shadows in the shader settings

Same problem. This happens only when the lantern is equipped. Edited: I found out that this problem can be solved by disabling entity shadows in the shader settings

oh, weird. i used to just disable the visibility of the belt slot

Sorry for just now getting to this.
What shaderpack are you using, and do you have any other mods that might influence the rendering system? Enabling shaders through oculus using the packs I frequent have not been able to reproduce the issue.
I'd like to find a way to resolve this if it's a problem relating to this mod, but at this point in time I can't guarantee that is the case, as with other issues that have been brought to me.