OK, so I have played around a bit.
The TV fix did help, but did not entirely remove it. But it was significantly better and more playable.
What also helped was plugging the controller in. I don't have a charge and play kit, but the cable for the Xbox one is the same as PS4 (which I DO have). When I plugged in the cable, the lag also dropped. So between the 2 solutions the game is much, much smoother. Still a tiny bit, but I can actually run through these games with minimal problems now. I'm actually pretty disappointed that in 2015 Capcom wasn't able to make a game that allows seamless wireless hardware. I know that with wireless there is always SOME lag, however Rare Replay proved that you can have old school NES games on current gen, with wireless tech, and be virtually seamless.
Thanks!
A quick side note - while I love the Xbox One (favorite console this gen by FAR), these fast paced button mashing platformers don't feel as smooth with the Xbox One controller. Especially at times when you need pixel perfect accuracy. Everything works, it just doesn't feel as nice. Buttons have to be pressed faster than they pop up from the last time you pressed them. I don't know if this would be better on PS4, but I can almost certainly say it would be on 3DS. - but that is just one man's opinion. Mega Man 3 is one of my favorite games of all time, and I can beat it without dying or using energy tanks. I'm not trying to brag, but I am damn good at this game...and I am dying left and right here. Hopefully with the less lag it will improve. But so far I can only give this a 6/10 or so since it really doesntt offer much besides challenges and the controls are almost as bad as the Anniversary Collections a few years ago.