Exactly same issue in dungeons, open world exploration, world bosses. It’s only recently started in like the last few days and it’s killing the will to play.
I dont know if it’s relevant but we only went up to WT3 in the last week on the PS5 playthrough (couch coop with the other half). But I dont remember it being an issue in WT2.
Also I’m playing solo on PC in the same room and I’m seeing no rubber banding on the PC at the moment but only in WT2 there.