Title Update 2 is now available for Star Wars Outlaws, and Ubisoft appears to have begun meaningfully addressing the most common complaint we've seen: how stealth works. That said, it seems there is more drastic work to be done, with Title Update 4 (21st November) specifically focused on deepening stealth and combat mechanics, so if you've held off this long, it may just be worth holding out.
Regardless, today's patch should hopefully reduce general friction, with "improved stability and performance across all platforms" and "improved animation of Kay's movements" being other standouts. In addition to the more usual patch note suspects like bug fixes and tweaks, the developer highlights changes to enemy AI, pathing, positioning, and detection that should make sneaking about more satisfying. At 3.80 GB on PS5, it's pretty substantial, and if you'd like to peruse the complete list, you can check it out here.