I think it’s stored in a particular save, so that you can load as many times as you like, you’ll get the citizens stuck in the ground every time. (See the start of the video attached below.)
If it helps, here are two saves where it happens, to me. In the former, all my citizens are stuck; in the latter, my carpenter and trapper are spared somehow (and they don’t seem altogether concerned about the lot of his fellow citizens). In the second save, also note Lorna on the ladder to the scaffolding of the house that’s being constructed.
Pretty high priority bug, if you ask me. It’s broken my only two games so far within an hour of play (well, combined with the UI freeze bug that caused me to save and load in both cases).
Oh, I also got an error message like @Aron0621 mentioned/showed each time, which can also be seen in the video, but it was slightly different. Again, the first save is shown at the beginning; the second save at the end, as it is what made me end up stopping the recording.
Have you looked at the second save game I attached? Lorna is on the ladder to the house that’s being constructed, which means you can see slightly more to her than to the others, which might be helpful. I can’t recall if you can tell whether she was carrying something, but if she was building the house she could have been carrying a log. The new footman was also stuck in the ground, but not the carpenter or the trapper. You could check if those were empty-handed.
I just got this feature as well but I just received notification for a new villager, a carpenter, to join and ended up with the HUD being stuck open for the second workbench put down. On attempting a Save and Reload the reload shows several villagers stuck in the ground with heads. The save becomes pretty much unusable after this point from villager useage point of view.
Yep, that’s the head bug—citizens on the ground only show their heads, but if they’re up high for some reason you can see their whole bodies kind of compressed like that. I attached a save (the second one in the linked post) where you can see that in Lorna on the ladder to the house I’m building.