We study electron correlations and their impact on magnetic properties of bcc vanadium by a combination of density functional and dynamical mean-field theory. The calculated uniform magnetic susceptibility {in bcc structure} is of Pauli type at low temperatures, while it obeys the Curie-Weiss law at higher temperatures. Thus, we qualitatively reproduce the experimental temperature dependence of magnetic susceptibility without introducing the martensitic phase transition. Our results for local spin-spin correlation function and local susceptibility reveal that the Curie-Weiss behavior appears due to partial formation of local magnetic moments, which originate from $t_{2g}$ states and occur due to local spin correlations caused by Hund's rule coupling. At the same time, the fermionic quasiparticles remain well-defined, while the formation of local moments is accompanied by a deviation from the Fermi-liquid behavior. In particular, the self-energy of the $t_{2g}$ states shows the non-analytic frequency dependence, which is a characteristic of the spin-freezing behavior, while the quasiparticle damping changes approximately linearly with temperature in the intermediate temperature range $200$--$700$~K. By analyzing the momentum dependence of static magnetic susceptibility, we find incommensurate magnetic correlations, which may provide a mechanism for unconventional superconductivity at low temperatures.
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