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Lags and packet loss when downloading (limited speed)

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Bazim

New Around Here
Hello guys,

Is there someone with good network knowledge? I have a really wierd issue here what I don't understand.

My router : TUF AX5400
My speeds from ISP : optic - 300 Mbps / 300 Mbps

I have my personal gaming PC and one PC what I am using as a gaming server for me and my friends.

The issue what I have is when I start download my friend and other people on that game server will start lagging like hell. I will understand it if I was using 100% of my internet. But I limited my down/upload speeds to only 8MB/s (that is like what 20% of my full connection speed?). So if (theoretically) 80% of my internet connection speed was free why my friends and other players started to lags on a server machine?

Another thing what I tried was the tracert thing. I tracert on google.com and it show me like this:

1. my routers IP (192.168.0.1)
2. some 10.X.X.X IP
3. some 10.X.X.X IP
4. some 10.X.X.X IP

I guess that 10.X.X.X IP's are some ISP hardware in our bulding etc..

So I start pinging google.com, my router, first 10.X.X.X IP, second 10.X.X.X IP, third 10.X.X.X IP. It was everything OK. No packet loss, good time (<10ms). Then I started downloading (some game update on Steam) and boom! Everywhere packets started droping exclude IP to my router (no drops). But pinging to google.com and the 10.X.X.X.X IP's were droping packets.

What can it be? It is normal that packets were droping in that internal ISP's HW's (10.X.X.X IP's)?

Router's CPU usage was fine (maximum 20-30 % on one core).
 
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