My system:
Microsoft Windows 10 Home (x64)
Intel(R) Core(TM) i7-2600K CPU
16.0 GB Memory
NVIDIA GeForce GTX 750 Ti (driver 358.91)
I had my friend test it on his system and he has the same issue.
He also runs Windows 10. And he has a GTX 460 gpu.
Example:

Full Size
He thinks it's probably Nvidia's fault when they updated their drivers, because I think it used to work just fine. I doubt any updates will be made to TMUF in the future, but you never know. I wanted to report this issue anyway.
For now the workaround is to lower Shadow quality to "High".