NPC Path-finding not working correctly, and is very chunky!

Is network ownership of the NPC set to the server? The issue you are describing sounds very similar to something I encountered a few months ago, and changing that seemed to fix it.

Yes, it is activated by the server, not clientside.

As was mine, but the issue still persisted until I called :SetNetworkOwner(nil) on the HumanoidRootPart of my NPCs. Since doing that I have had zero issues, so it is definitely worth trying.

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The character is r6, so theres no HumanoidRootPart?

All avatars have a HumanoidRootPart.