What happened
--- This happens on Standalone (NOT Editor)
This is regression: reproduces in 5.3.4f1 and in 5.3.3p3 (first and second spins), but Not reproduces in 5.3.3f1, also Not reproduces on 5.4.0b10

How we can reproduce it using the example you attached
--- please see attached video ---
1 Open atached project
2 Build and Run Standalone
3 Press "LAN Host" and "fly" the space ship up by using arrow keys
Actual results: notice artifacts on the scene (if you open "network" scene, select "Plane" object, go to Inspector and remove "Mesh filter" or "Mesh Renderer" - artifacts will disappear)

(if you repeat these steps in Editor - you can see that there are no any artifacts in game view)