Yes, it does. But not only that.
There are other bugs also associated with the mask, that I found. Not only it resets and screws up the portrait, but it also resets any change you make to the character in the mirror on the Lady Vengeance. Furthermore, if you save your game while shapeshifted and then load it, your character is coated in some weird blueish transparent goo. When you shapeshift, it goes away... however you lose any changes you made in the mirror plus your portrait gets messed up.
Its a bit tiring to have to go to the mirror every time I start the game and/or shapeshift. However, the mask is an awesome artifact!
