When I'm using WSE2 and I'm on the duel server (EU 3), I get the same lag with movement that I get with a very high ping, however I can block and attack fine and it only affects my performance in duels when players teleport around small distances. My ping is at a constant and normal 40-50, I don't have this problem on other servers.
When I turn off WSE2, I don't have the same problem.