Server capacity overload

[LMS fred]

We have been playing multiplayer on the game. 1-2 players isn't bad but we are seeing intermittent lags and watching steam drop during these issues. Once we have 3 or more players, then the issue is very pronounced and there are times when the game becomes almost unplayable.
Looked at my system (I am the host) and watching system stats but don't see anything that is out of the ordinary based on other games. Even at max, I only see 100Mbps network and 30% cpu utilization with about 30% memory usage. GPU runs 10G dedicated memory and not over 50% utilization . I am on a 1GB fiber connect so based on these numbers, it doesn't appear to be local.
So when we are hosting (not dedicated server) are we running through some steam systems that are overloaded. The issue does appear to be worse in the afternoon and weekends. ( USA Central Time zone).

Would running a dedicated server resolve these issues ???

any insight from the developers would be helpful. It does not appear that the game has had much done in terms of optimizing.

[Ozymandias]

Playing with a couple friends on a hosted server as well. At times we experience lag that renders us unable to see enemy movement, or even move ourselves.

[STEALTHxKILLZ]

Same here on fiber and been fine forever on the same game/people and its bad last few days.

[Beorn]

I don't think that it is a cpu or gpu bottleneck rather than a problem with the networkstack. Even when just playing with two players and my honey is hosting, frome time to time there are stutters where i may not even see enemies - although her system is mostly bored regarding cpu and gpu stats. Looks like the network packages can't be build or send out fast enough. But that does not mean it is the games fault, could even be something like windows firewall that is doing nasty stuff. Hopefully my inhome cables are not broken anywhere .. ;)