Usually this isn't much of an issue in SinglePlayer, but it does occur there on occasion when the number and size of AI ships reaches a high enough number.
In multiplayer on most any server (even locally hosted with 2-3 players), combat and/or combat with multiple AIs leaves ships spazzing out like a person having a seizure. Sometimes cannon and beam fire phase through targeted vessels without actually hitting them.
Missiles also have this issue, where the server and client can't agree on where the thing is. It makes it incredibly difficult to reliably dodge missile fire in a small vessel and skews balance considerations towards missiles.
Large ships probably suffer from this problem the most - I've watched vessels rubberband thousands of kilometers. It crushes almost any desire to participate in PvP and seriously limits the scale of the game.
I've tested this on my own local server with 3-4 players (12GB allotted over 5-6 sectors max), as well as the MFleet server, which runs 20+GB over a galaxy of 10-30 players at any given time. It is consistent and reproducible in almost any version since I've joined Starmade.