Precise spacing and positional play is extremely difficult whenever there's latency involved. Your client has two not-great options:
The first option means that if two players both have 50ms ping, each player is always seeing everyone else 100ms behind where they actually are. If someone runs forward, stops, and casts a 100ms spell animation, then that spell has already happened on their client by the time you see it even begin. This leads to the phantom model of netcode which is how dark souls resolves pvp combat.
The second option means that you perpetually clip the beginnings of animations and rubber band their movement to put them where they actually are. For example, if someone goes from a dead stop to moving, you'll see them lurch forward/teleport to put them at where they would be 100ms from now in order to give your client their predicted position. This is how games with rollback netcode (like rocket league) work, and there's a ton of tricks to help make the transitions less jarring (like making sure movement has acceleration to buy the server time to make accurate predictions).
In either case, where does this leave the player that is trying to iframe dodge through a sword slice, or sidestep a skillshot?
That sword slice happened 100ms ago, and the player swinging the sword is actually attacking where you were 100ms ago. An attack that looks like it should absolutely whiff on your screen will hit the past-you on their screen, causing their client to send the damage info the server, which sends it to you. Timing a dodge now becomes extremely difficult, because you don't actually know when the sword's hitbox becomes active. If the sword swing becomes active 700ms after the animation begins, and you each have 50ms ping, then it actually becomes active 600ms after you see it. But, if you're playing against someone with 100ms ping, then it's 550ms. If you both have 0ms, it's back to 700.
You can adjust if you're playing against a single person, but trying to keep straight all of the different delay timings when there's 20 fighters running around throwing out animations is borderline impossible.
Once dodging / spacing is unreliable, you're just sort of floundering and spamming wide-sweeping attacks and long-invuln iframe dodges, which removes all of the crispness / fluidity that we love about single-player action combat games in the first place.
The solution to this is, unfortunately, to just design with this concession in mind. Precise spacing with latency is going to miss the mark, so don't build a game that relies on it. Instead, build for something that masks the latency (like tab targetting). Build the game around tab targetting concepts - short damage reduction windows on cooldowns, short burst damage windows on cooldowns, baiting enemies into poorly trading offensive for defensives. Add tab-targetting skill-based mechanics, like skill sequences that force players to have a high APM while moving. Add the ability to create/remove line of sight and create/close range gaps. Tax player's tab-targetting abilities with buttons that drop targeting, or create dummy targets (like illusions or totems). Add layers of bluffing/counter bluffing with reflection type abilities. Add reaction-based abilities like interrupts, and reward players for faking and landing those interrupts.
Basically, do everything you can to make your combat deep and interesting without making it rely on spacing when you know you have to support unfavorable network conditions!