This new component introduced into the game in the 1.16.100 update has had detrimental effects for server entity movement, and potentially TPS. It is buggy. It causes jittery entity movement, including item sprites when traveling through the air. Entities randomly teleport even in single player worlds, and this is likely furthering the worsening server-client desync issue on worlds. See MCPE-65094 .

This new component has definitely NOT improved performance in the slightest, evidently by the 1.16.100 update which has been absolutely terrible for client and server performance. This component should be removed entirely until it has undergone thorough testing. Apparently, mojang does not know how to test their own game because of how much of a failure this update has been for the game.