Im my case the water bug was only effected by running the game under window 8, with windows 10 the water displayed correctly. Perhapse its a difference in graphics card drivers or the driver version numbers i have installed. Im betting its something to do with the graphics drivers as steam uses its own Redistributables so the game isnt drawing on the OS's ones.
As for the clouds (which were the most realistic clouds ive ever seen in a game - i cant really put into words how impressed i am with the clouds... they are just the same as real life) I can confirm they were displaying correctly before the update on the 31st. now they are missing on both windows 8 and windows 10 boot options.
I have often wondered about the graphics cards vram, it does seem a bit low to me although it seems to use an additional 1gb of virtual memory as well.
Manufacturer NVIDIA
Model GeForce GTX 650
Device ID 10DE-0FC6
Revision A2
Subvendor ASUStek Computer Inc (1043)
Current Performance Level Level 0
Bus Interface PCI Express x16
Temperature 38 °C
Driver version 30.0.14.7298
BIOS Version 80.07.35.00.38
Physical Memory 1023 MB
Virtual Memory 1024 MB
I have yet to test the game on my main computer as its not set up atm due to house renovations.