I can't help with regards to "highest quality" and "ugly artifacts" (because both of these are very much opinion-based), but I can help with the jerky playback.
1. Set your LAVfilters decoder to "DXVA2 (copy-back)"
1b. If you have the drivers for Intel integrated graphics installed, you can alternatively try setting your LAVfilters decoder to "Intel QuickSync"
2. If that doesn't solve the problem, manually increase the amount of threads that SVP uses via "Application settings" -> "Additional options" -> "Processing threads"; set it to the smallest value that gives you perfectly smooth video.