This single still is from the widescreen version of ?Beyond?, one of the Animatrix animated shorts. It has been considerably scaled back from the original material.
Like most of the Beyond screenshots presented here, this one shows an effect of what happens when the laws of a virtual environment become too complex, and interactions go a little ca ca.
This one is a little odd, its a dog, an old, stray dog who has snuck into the corruption area, and is just standing there, eating at the grass. It steps forwards to try the grass further back in the shadows. As it does so, the shadows grasp out, flowing up the dog, changing it. The dog looks up and two glowing red eyes stare out of a black, featureless shape. It goes back to eating the grass as the blackness continues to consume it.
What is happening here is fairly clear. The dog is an AI construct given embodied form, and a behavioural program similar to advanced needs-based AI. Its physical form is a separate construct, although the two are linked, much like a human and their avatar.
The blackness is some form of corruption of physical objects. As the dog enters the area, it becomes exposed to whatever randomising factor is present, and its body avatar begins to morph into another, possibly randomly from the database. A weird hell-hound begins to form, yet, the separate AI personality files are not affected, and so whatever it looks like now, it thinks of itself as still the same dog, and continues its same old behaviours as best as it is able.
As is common with 'Beyond', none of the weird side effects of the corrupted files in and around the house, are unreplicatable as errors in our own, far less complex VRs.
Link: Animatrix: Beyond