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Patchnotes 1.1.1 Build #43794 (All Platforms) - August 8, 2023
(news.blizzard.com)
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In addition, it looks like there are VRAM management changes as well: https://www.wowhead.com/diablo-4/news/patch-1-1-1-includes-vram-fix-blizzard-confirms-334424
Is this why game game is so laggy despite having 100+ fps? My VRAM is usually at 95%+
Or is that an online issue?
Very likely. If you're playing on Ultra settings especially this should help.
Possibly. I believe that most of the issues that make things look “laggy” are client-side rather than network/game server related. VRAM issues may be part of the cause, but also have caused situations where the game crashes as well.
Considering that the main fix for stuttering has been to turn down texture quality, this makes me hopeful that performance will improve a bit.