Well this mod does not do anything special for the color and skins, it uses the vanilla system and once it leaves the paintgun it's handled by the game, so I very much doubt that's caused by this mod.

It sounds like generic performance issues, either it's simply from looking at a lot of geometry or your RAM and/or VRAM is getting overfilled and it starts using pagefile more, causing latency in reading/writing...

If you're hosting the world then you can experiment more, clone the world and remove all mods to see if it improves, but first also just F5 to reload to see if it improves, because there's a lot of complex systems going on before one even adds mod so a simple reload can also fix things temporarily at least.

And I'd say post this in the game's discussions or keen's discord at #help-se :P

thank you for the help. i have been so focused on server side thinking it was just an issue that wasn't showing a log. client file validation fixed the issue.