This issue has been happening since the unity networking update[1095], before that everything was perfectly smooth.
Objects using the VRC_ObjectSync script to sync position over network have started periodically stuttering for non-owners. It's very harsh on the eyes if you're watching the object.
It's most noticable with vehicles. A vehicle will appear to teleport forward, stay still for a few frames, then continue on its way. It often happens twice in a row. This is extremely bad for the dogfight tournaments we've been holding, and makes it sounds really bad if any doppler effect is applied.
Additionally, if you're a passenger in a vehicle, this bug causes your viewpoint to be appear behind the vehicle for one frame when it happens, which is very uncomfortable. Having long conversations while cruising around is no fun any more.
It seems to happen much more frequently if you have a higher ping. Playing on a Japanese server from Europe, it happens about every 5 seconds. On European server, probably every 15-30 seconds.
To replicate, join a world with vehicles, (Test Pilots, Varneon's Udon Vehicles - Island), and watch somebody else drive.
It looks like the interpolation is skipping a keyframe periodically.
I've created a short video to show what I'm talking about:
You can watch at 1/4 speed on streamable to see what is happening a bit more clearly.