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Patchnotes 1.1.1 Build #43794 (All Platforms) - August 8, 2023
(news.blizzard.com)
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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.