I have started having this issue on my PS5. I had fixed the problem and had been able to play ESO for the last 2 days. But the issue has returned. So I am about to repeat the steps I took 3 days ago. I will also submit another ticket about this issue. I hope you guys at Bethesda and Zenimax are investigating the matter.
For any other users looking for a temporary fix to the issue. I had to restore my console to factory settings and then reinstall ESO, I tried uninstalling and reinstalling, deleting save data, swapping from digital to physical version, restoring licenses. None of that worked in my case. Only restoring my console worked. Temporarily.
Again, this appears to be a temporary fix only. This is the second time in a matter of days I will be having to restore my console. Fortunately ESO was the only game I had taken the time to install this time around. It would have been a lot more frustrating if I had to reinstall all of the games I had before the problem arose.
Please, please, please, Bethesda,, Zenimax. You need to find a fix for this. I will continue to use this temporary fix so I can continue to play the game I love. But, I will not bother to install other games until the issue is sorted.
Quick update. Good news! 'Restore Default Settings'. I thought I would try that, rather than 'Reset Your Console'. It worked! No need wipe the PS5. Possibly, still only a temporary fix. But a much faster, less painful work-a-round.
While each of you is surely trying hard, the game is failing to deliver if we can't play it. I spend more time disconnected than IG and the lag in Cyro means I am nothing more than gank meat.
Today was the last straw and we've decided to quit ESO for a while. We've invested alot of time and money, made a lot of friends, and I wish the game was playable. It is not -- not even close.
On behalf of the many others, they just ask for some honesty. Instead of band-aids, just admit the game has major problems, show us a path to corrective action, or tell us it can't be done and let us move on in peace.