This article explains how you can fix some problems related to improper illumination, especially those happening around camps and torchfire, that the “performance-saving” configurations which have been floating around for a couple of days cause.
Chances are high that you’ve tuned some settings in the configuration (or alternatively have downloaded a configuration file like this one) in the hopes that you’ll increase performance thereby.
The problem lies in the option
Delete that line and the torch-illumination should be back to normal. Please note that this will however significantly reduce the performance gain. This the dilemma here (at least until the game has been optimized further): Either you’ll have the comfy cozy light or a high framerate.
Another Setting you can try to play around with is the Gamma setting. Basically, it’s a setting that describes how pronounced differences in luminance are, and you can tune it as you see fit. Simply use the gamma command ingame to change it.