Falling through the floor is not a visual glitch, but a real bug. The geoengine doesn't correctly calculate the path you move through and sends you to a whole different Z level.
What needs to be fixed at geoengine side is:
1) Correct calculation of movement path and which geodata cells it moves through.
2) Correct checks of availability of movement from one cell to another. Or one Z level to another.
3) Correct checks of Z level and proper readjusting of it for ground movement.
What needs to be fixed at movement system:
1) Do not ignore geodata while swimming or flying. Use 3D geodata checks.
2) Synchronize the client<->server position. Use the correct formula for movement speed. In the first ~500ms when movement starts, the player needs to use walking movement speed.
3) Correct the relative location inside Vehicles (Boats, Airships) and allow fluent transition from world XYZ to relative XYZ when entering the said vehicles.
4) Correctly start/stop movement when you can and cannot move. Correctly reflect switching from walking/running. Same for NPCs. They would otherwise appear as walking or stopped, but when you target them, they will appear at some totally different place.
5) Correct the pawn following, and overall the following system. If it is not correct, you will have problems with attacking moving targets.
And pathfinding needs to be fixed, if you feel extra fancy. But this is something that is not as critical and obvious to fix as the others, imo.
As for the visual glithes, there are so many.
For example, creatures appearing to be running, but not. Or creatures to appear to be on one place, but when you click on them, they appear to be walking, or in a totally different place.
Rubber-banding is also a problem, which occurs due to bad synchronization of client/server positions. Or you appearing at some location, which you are not at.
When entering in water, you instantly fall to the bottom. This happens, if client's movement type is ground movement still, so it ignores the water animations and directly falls. But in the server you are still swimming and somewhere in the middle of the water.
On my video with the wyvern, at the end of it, you can see other visual glitches, how it skips the bridge and appears on top of it, or how it falls in the water instantly.
There are more things, but this is what I can think of right now.
And the main issue is that, if you try to fix one thing, you might break another and cause another bug. So it is endless bore of trying to fix something and testing to see if you haven't broken something else. It is 50/50.