This issue happens to me even with a 30/mb down speed and 20ms ping, so it's not just bad connections.

I have this issue too. My character seems to be working fine from my friends' perspectives, but on my side it's like I've disconnected - everyone stands still or moves in the last direction they were pressing endlessly. I can't open doors, pick things up or use things in my inventory. It really sucks when it happens in a firefight because my character is still live but I don't get any updates on what's happening until my side catches up.

I've noticed that once you see the red chain pop up, your side has caught up and everything is updated to normal, but for me that only lasts for a second or too and it repeats. My client lags out for like 5 minutes and catches up, only to lag out again. Relogging fixes the problem by updating everything when you log in, but within a few seconds it happens again and everything lags out. Sometimes I can play for 30 minutes and it'll only happen for 20-30 second stretches every once in a while, or sometimes it's endless and I have to relog to fix it, only for it to happen immediately upon login.

Playing other games or even the mod doesn't cause this problem - maybe it has something to do with the network bubble?

*I'll add that I live in central US and can connect to servers with 10 ping, having a 30/mb download/4 upload speed, and this issue still happens. Although, once I lag out and "reconnect" (in that my side updates where everyone around me is and lets me use items again), it'll give me a 100000 desync value

Yeah this is really annoying - I was walking through a city and everything was completely silent until I saw "You feel warm blood on your clothes" and looked around to notice a guy axeing me. Footsteps for sure need to be louder, I'm excited to see what their new sound guy will do.