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Edit: Isn't that icon you describe active in a no horse zone? Try going in a mine and back out and see if that fixes it.
https://i.imgur.com/wTokBBN.jpg
Lol, I had that happen, too. I rode through a narrow passage and I got stuck and the horse disappeared but I was still hanging in midair. Eventually I died. It was quite hilarious.
https://i.imgur.com/K4f93MQ.jpg
Maybe try killing yourself? That would usually reset the need to use a flask in a non-bugged circumstance, might work here too maybe?
Edit: Also in the second screenshot you were out of flasks so it wouldn't have worked to use it even if you aren't bugged. Get to a grace and restore your flasks; if that doesn't work then yeah it's bugged, so try what I suggested before.