I executed console command NetEmulation.PktLag=1000 on both the server and client windows.
I didn’t see a lot of difference, but the performance WAS worse. The car had to “teleport” a lot more than before, with larger differences between the true authoritative state and the current client one.
The Net Update Frequency is already set to 1 time per second, but that’s a hard limit that would happen regardless of network conditions. The PktLag is simulating if network conditions were worse than the network update frequency, and would limit the updates further no matter what the server and client tried to do.