lCraftyl: The Shadows aren't supposed to be on by Default.
Even when you type "cg_shadows" into the console to check the value that is set, it will says "Default value is 1"
Basically, the Dynamic Shadows are a experimental thing that was never fully added into the game as a core feature. You can only enable them from the console itself on the OG release and for good reason, because they're pretty janky.
When GOG made the installer, someone must have enabled them in the config file and left them on when they're not really supposed to be.
Imo, they should update the installer so the Dynamic Shadows (cg_shadows 3) aren't enable by Default. Again, they're buggy and could cause issues, even crashing or performance problems.
cg_shadows should have the value of "1", which enables the blob shadows. (The value 2 doesn't do anything I don't think)
The GOG version defaults to cg_shadows 1 simple blob shadowss
cg_shadows 0 is no shadows
cg_shadows 1 is the blob shadows
cg_shadows 2 is the stencil volumetric shadows. Transparent dynamic shadows they light the characters, faces etc...
cg_shadows is a black dynamic shadows under the xharacters, solid, It does not affect the character themslves, only the projection.
Bugginess, perfomance hit aside all these shadows are available. Tested.