i had similar fps issues in certain places on one server. not related to holding items but editing config to make quad expansion 0.0 instead 0.002 fixed my fps problems. also disabling continuity's emmisive textures also makes fps normal. hope this helps.

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#27

it seems that quad expansion causes significant lag in certain places with continuity's emmisive textures enabled. models have no gaps even with 0 quad expansion from my experience.
https://youtu.be/ncJbOWHYfnw

you can turn that off then. those are really just for even tinier gaps and meant to be tweakable by people. Idk why it would cause such a drop tho because quad expansion does not increase the amount ofquad there is, just makes them bigger