This seems to be hardware related, not software. Had the same issue on another PC, but not on many others i have.
Some quick results:
Linux Debian or Mint has no influence, happened on both.
Linuxcnc 2.9 build 1350 on a Dell, no issues.
Linuxcnc 2.9 build 1427 on a Lenovo laptop, no issues.
This older HP core2duo does that with 3 builds, 1610 and two earlier versions.
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First instinct was to look at the keyboard, as many of you pointed out, but it looks that the keyboard is not causing that as the same keyboards on the other PC's jog happily, and i have tested some 5 or 6 of them with PS/2 or USB connectors, does not change a thing.
This is most probably the "typematic rate' setting that was adjustable in older BIOS, but it is not on the new ones. Same thing happens when holding down any letter key, the speed of printing it on screen fluctuates !!!
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Thank you all for continued support, it is very much appreciated.
Marking the topic as solved.
regards,
Tom.