Just to let you know..
I updated Windows 10 to the September cumulative update (KB 3189866) and then retried with DisplayLink drivers 8.0 M2 (after uninstalling drivers 7.9, restarting, running the cleaner tool, reatarting again, then installing 8.0 M2).
The lag is still there and there doesn't seem to be any difference at all. Perhaps the fix for Windows wasn't backported to the September update or so, I don't know.

Hello,
The description of that package is that this is a security update.
Like with any KB, you can get what it is supposed to fix from Microsoft website
KB3189866 - Cumulative update for Windows 10 Version 1607: September 13, 2016

The lagging issue is not a security problem.

I am still experiencing the lag after the update as well. Alban - Are you then suggesting that the update wasn't included in the September Cumulative Update? I'm sure the reason Mag is asking is because you indicated it would be included in the September Cumulative Update. Are you suggesting that Microsoft will put out another September Cumulative Update?

AFAIK that isn't exactly correct. They highlight the security updates but those aren't the only ones included.

EDIT:
By the way, this page highlights some non-security content of these cumulative updates and the KB 3189866 contains quite a few of such fixes: https://support.microsoft.com/en-us/...update-history

If that fix isn't really supposed to be included in the KB 3189866 cumulative update, in which kind of September 2016 cumulative patch that You mentioned is..?

The first three words say "This security update" and everyone here said it doesn't fix it.
I don't have a KB number, otherwise I would have linked to it.
Everyone receives an email each time someone puts a message in this very long thread. That's why, to respect everyone's inbox, I intend to only post when I have something definite on this thread from now on.

Has everyone resolved this lagging issue? Seems to have gone quiet here, but my laptop still stuttering

Nope, the problem still remains, but apparently DisplayLink has no additional information on it unfortunately.

Albon - And by the way, I have never received a single e-mail because of anyone posting to this thread.

I will query Microsoft on the status during our next call.
If you don't receive notifications, it means you are not subscribed to the thread. I would expect people who don't wish to come everyday to subscribe for email updates when their thread is updated.

Mouse Lagging and
 

Same issue happening to me on several Windows 10 devices loaded with the Anniversary update. Attempts to roll back the driver to 7.9 m7 have been cumbersome and inconsistent.


Another poster identified the symptoms succinctly:


Windows Driver Foundation (WUDFHost.exe) appears to have something to do with this. CPU usage from it spikes when there is more going on such as video, cursor movement, or basically anything that is changing on the displays.


Hardware:

Surface Pro 3
Lenovo x1 Carbon
Lenovo Yoga
HP Elitebook
*Lenovo USB 3.0 Dock

Would like to see the resolved asap.

6 Windows updates that may cause the issue
 

I have the same problem after the last Windows 10 updates, yesterday on one computer and today on another one.
Updates that were installed today on second computer:
Security update for Microsoft Windows (KB3193494)
Security Update for Adobe Flash Player
Update for Microsoft Windows (KB176936)
Update for Microsoft Windows (KB176935)
Update for Microsoft Windows (KB176937)
and an unspecified one:
Update for (KB2504637)

Hope this issue will be solved soon as it causes serious productivity issues.