When a function node is set in the flow after a Conversation node that is set to Static Text, and skip user response. The Conversation node does not read the text outloud UNTIL the function that is AFTER it runs. Then it suddenly speaks the conversation node text. Is there a way to fix this? I have tried even setting 2 conversation nodes before the function node splitting up the text, and same behavior happens.

This is a known behavior in Retell the static text gets held up waiting for the function node to complete before speaking. Best workaround: Instead of using a separate Function Node after your Conversation Node, attach the function directly onto the Conversation Node itself. This way the static text speaks first, then the function fires no more delay.