Stuttering/hit hing during multiplayer and early game single player

My friend and I are experiencing frequent movement stuttering in Grounded 2 multiplayer on Steam.

The issue does not feel like low FPS. Instead, every few seconds it feels as if the player is being slightly pulled backwards while walking or running, similar to rubberbanding or position correction.

What we observed:

1. Both players experience the issue.

2. The host is affected less than the client.

3. In singleplayer, the stuttering is much less noticeable and mostly disappears after the first few minutes.

4. In multiplayer, it remains consistent throughout the session (in waves).

Our setup:

• Both playing on Steam (no Microsoft/Xbox account linked).

• Both located in The Netherlands.

• Both using wired Ethernet connections.

• No VPNs.

• No Discord, Steam or other overlays enabled.

• Latest BIOS installed (Intel microcode updated).

• Game files verified.

• Issue persists regardless of graphics settings (Low to Ultra).

Hardware (one example):

• Intel Core i5-13600KF

• NVIDIA RTX 4070

• 32/36 GB RAM

Average FPS is around 60-80, with spikes 100, but the problem does not feel like a performance issue. It specifically feels like frequent movement corrections while walking. This is not continuous but cones in waves.

Because both of us experience the same behavior, with the host being less affected than the client, this appears to be related to multiplayer synchronization or networking rather than hardware performance.

We hope this information helps reproduce and investigate the issue.