I have the same problem as you, though its not as bad
Even when I change the bitrate to 100 and the quality to its lowest, it doesn't change
Though I have a theory...
I think that lagging back isn't based off of your OBS settings, or anything related to OBS, but instead related to your in-game lag/quality, and how heavy the game is on your computer. The reason I think this is because sometimes as soon as I load into a world/lobby in Hypixel, the lagbacks are really bad, but start to decrease when I'm in the lobby for longer.
I did some testing on just switching in an out of worlds and moving to check how much lagbacking was happening, then checking the lag after staying in a lobby for a while, until the actual in-game lag reduced.
( here is that video:
https://www.youtube.com/watch?v=ltSHOMebw30 )
So just test minimizing your in-game settings, if they're already at the lowest, all I can say is that the problem might be that the game is heavy on your computer/lagging, therefore making OBS lag more.
This might make completely no sense at all to some ultra hyper OBS tech god reading this, but its just what I found out. Hope this helps out :)
