This is still a thing on Patch 2.01! But, I saw somewhere that you can start attacking like crazy until your stamina goes all the way to max to fix it and it worked! I was Rey, lost my block, got to a safe spot, started mashing my attack button until the stamina circle went full red, and then my blocking was back. I hope this can be used to any no block buggy situations.
Here is a somewhat comprehensive video showing this BUG happening and also the out of stamina solution to it so we can remove it without having to die or respawn: https://youtu.be/T0elF_zR5EE
