I have those flashing accessories, too.
When I update the accessorie wearing sim's appearance everything's okay till I reload the lot.
Also, townies that I made wear those accessories reset to the blue flashing each time they enter the lot.
Weirder even, necklaces do not move with the sim's body - e.g. they stay put when the sim leans down to pick up the paper.
This all started after PETS was installed.