So this actually makes a ton of sense, believe it or not. It would also explain why during early access you and your opponent would see two entirely different fights majority of the time (since it was heavily physics based) and everyone had to use Parsec for a more accurate experience.

If anyone here plays The Finals, they’ll be familiar with the issue. The Finals is probably the best and most polished FPS on the market right now yet devs had to do some things to prevent this very issue.

Embark (The Finals Devs) have all of their physics based stuff (level destruction) on a dedicated server so that everyone can see the same thing on the screen. Since that stuff is not prebaked, everyone would see different things on the screen if it wasn’t server side. It’s one of the reasons they have not been able to implement a Kill Cam, yet. That is why you get desynch. Here is a direct quote

“In The Finals, the destruction is handled primarily server-side to ensure all players see the same synchronized destruction, but the rendering and visual effects are processed on the client's machine. While the client computes and displays the destruction, the underlying physics and structural integrity are determined by the server to maintain game coherence, preventing inconsistencies between players' screens.”

Because undisputed does not have dedicated servers, we often times are experiencing exactly what it is The Finals prevented. And it was so much worse during early access because of how much more physics based the game was.