Ok good news it appears the online modes itself are bugged and not the actual netcode so this is promosing because this means the online is fixable.
Basically at the moment the online modes have sync issues except for party mode for some reason so on the glitch modes it will look like you are playing underwater.
Here is a work around which i have tested with a friend who was lagging prior to testing this. Basically you need to enter someone else room they must be on a 5 bar connection and play within that room it is the only way to play online lagless. Watch the video below for more detail explanation.
https://www.youtube.com/watch?v=ubAnmYJ1CFo
So for the time being we cant play private matches lagless until this works you will have to use this workaround to have a good online experience.
This gives me some hope that it'll actually be fixed.
Yeah, Zarina is gorgeous and fun to use but there's a lot to process with her. Mui's rhythm is so visually engaging. It's like she's dancing when she does her rekkas. Plus she does the NiGHTS loops in the air, kamehamehas and dragon summons! She's fun. Tung Fu is also lots of fun and does good damage.
Yuri has dive kicks so she's evil.
I'll have to try this. Looking forward to SNK patching this issue out for sure though. I only played 2 matches (private, same person) and they were underwater. Granted the person is on the other side of the country and we never really had buttery matches in SFV (much less 4) but still.
Also, I couldn't figure out how to get that stupid chat box overlay off the screen during the match.
Press the options button to open the menu and you can turn it off from there.