This bug has been fixed in V1.166 (version is visible from the credits in the start menu).

This is the old post about how the bug used to present itself:
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Hi there, it has been brought up by some users that if you happen to die after visiting the second island, the game might have you wondering around from island to island with nothing obvious to do.
The bug is now fixed and waiting to be included on the next patch, meanwhile, here's how to get around it if you get stuck:

If you happen to die after landing on the second island, you will find a field-note to remind you the name of the island you're supposed to visit next.

The bug is triggered if upon restart, you decide to go to any other island that is not the one on the field-note.

To get around this bug, you can simply eject yourself from the pause menu, and upon restart make sure that you travel to the island reported on the field-note.