Weird Jumpy Behaviour in Act II

Bug Report
When I began Act II, everything seemed fine, but as I progress, I am experiencing strange behaviour. First, my character changes position randomly. I will be running in some direction, then the character and companions will suddenly jump to a previous position in the path. This can occur in town, in an area, or during a fight, which is fatal. Second, there is a noticeable and increasing lag between performing an action, e.g., striking something (enemy, barrel, doesn't matter), picking up items (gold, etc), or invoking a skill. It is now typically 3-5 seconds between executing an action and having it performed. This happens in all cases including in a fight, which is fatal.

I notice no other obvious performance issues. Animation remains smooth and the video quality is consistently excellent. There are no lags between video and audio.
Having this issue as well, right from the beginning of the game.

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