To reproduce:
1. Open the "Main" scene in the attached project
2. Play the scene
3. Select the "Woman_Martha_1" game object from the Hierarchy
4. Observe the Animator window
5. Wait till animator returns to state "Movable_Idle_Primary"

Desired outcome: The character is animated with the Idle animation.
Actual result: The character model "collapses" until the transition to the next state.

Note: The issue appears only when the animator controller contains more than "Base layer" (when another layer exists or is added).

Reproduced with 5.5.1f1, 5.5.4p1, 5.6.1p1, 5.6.2f1, 2017.1.0a1, 2017.1.0f1, 2017.2.0b1