See this thread for more information: 🚨 Private Servers after Update (with no wipe) - Bugs, Interaction delays, NPC teleportations, etc - #31 by IncRaven
As a note last night, was happily adventuring away, friend connected to the dedicated server and as soon as he did, everything turned into the matrix where the enemy was zipping from spot to spot and I was just instantly killed because I couldn’t figure out where they were and what they were doing.