This applies specifically to worlds where areas are manually culled by enabling and disabling those parts of the map. For simplicities sake I'll refer to each part of the map that is enabled/disabled like that as a "zone".
I'm seeing an issue where when the instance master enters a zone, physics will go absolutely crazy for anyone already in that zone (except the master) for a few seconds. The amount of time those users lock up while everything goes crazy depends on the amount of objects. It seems to work out roughly half a second per 30 objects or so. The objects move like the world just exploded also drops those players FPS to 0 during that period.
After a few seconds, the issue will suddenly resolve itself and all items will teleport themselves to their correct location.
This issue doesn't occur if the instance master is the first person in the area. The issue also doesn't repeat, so as long as the host has been into that zone before that session, the problem won't occur again.