Just wanted to give everybody a heads up.
I visited the Valheim official discord to request help with the server lag and packet loss errors.
**recent patch changed the steam networking implementation, all traffic now uses steamworks proxies to obfuscate client IP, as is default with latest steam networking. this seems to have produced multiple issues, in particular with the way GSPs deploy their game servers in standardized containers.**
There was also a sticky up about it explaining that they are aware of the problem, and will be working with valve to find a solution. They did however reiterate that this is early access and issues like this are expected.