Network movement replication choppy on server

I am networking a simple movable character, but the replication of the client’s movement, is choppy on the server.

I have recorded the behaviour for both my own project, but also the standard FPS project.
The server is on the left and the client is on the right. Notice the choppy movement on the server (left), when I am controlling the client (right)

Watch it in 1080@60 fps

My project:

FPS project

Any ideas, what is going on?

Finally found other reports here:

Appears that this is an engine bug:

Current workaround is to set p.NetEnableMoveCombining 0
As mentioned here: Listen server host jitter - Blueprint - Unreal Engine Forums

---- EDIT: ----

According to a post here:

Listen server smoothing for client meshes was added in release 4.12. The issue that is backlogged is for forward prediction of the capsule position. If something is attached to the capsule it will not be smoothed, but the mesh is, so we recommend anything that is attached and needs to be smoothed be attached to the mesh. If there are cases where this is not working correctly, please let us know!

This means, this is incorrect and will not smoothe the Cube+StaticMesh


Where this is correct, smoothing the Cube+StaticMesh