When questing as soon as a quest step is completed by anyone in the party (i.e., killed a quest mob, collected quest resource, etc) the entire game appears to pause for a moment. It feels like about .25 seconds of a pause and then everything goes back to normal until the next quest step is completed.
Disabling Carbonite.Quests stops this from occurring.
I have LUA errors turned on but I am getting no errors.

Sound like related to this mikepauer/Carbonite#61...

After reading mikepauer/Carbonite#61 I would have to agree that it sounds exactly like the issue I am experiencing.

Ok, try again now, it should be better now.