Game just freezes then "Unexpected disconnection" occurs 2.4.2/3

This happens very frequently when entering towns from other waypoints (hideout etc) since 2.4.2/3 patch. It does happen even while logging in sometimes. No such problems on 2.4.1.

How to reproduce:
Waypoint from elsewhere (i.e hideout, eternal Lab) to town.
Load screen
Appear in town but game just freezes
Game kicks out to login screen with "Unexpected disconnection" error message

Running on 32bit steam-client, Win7-64


screenshot: http://imgur.com/a/TCAhe
Last bumped on Dec 6, 2016, 3:32:34 AM
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This also happens to me. Occurs nearly every time when first logging into game. Game completely locks up UI of computer, CTRL-ALT-DEL can't break out. Finally game fully crashes and I can log back in. Most of the time game is functional after second try. Sometimes takes a third try. Today I got the same disconnect error mid-game for the first time, in uber lab.
Update:
This problem still occurs on 2.5.0 albeit much less frequent than on 2.4.2/3. Most noticeably is upon entering first instance right after character login.

Very noticeable stutters when other players enter/exit the town instances

I am suspecting that it has something to do with async since disabling it removes the problem(the disconnect but not the stutters) but the load times are much more longer, too long to be bearable.

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