Pretty sure, yes.
Don't know where you got that it sees things non-linear, King crimson sees all actions in time skip as if time had never been skipped, so it's like it watches a liveaction powerpoint and then it can choose where to jump back in. The thing is that time stop mitigates that since Dio's actions during time stop are outside of time, thus outside what Diavolo would be able to perceive. Only Jotaro was able to see what happened during time stop because he had the same ability. Diavolo's fundamentally different ability only sees time as it flows normally but allows him to jump forward in between points. Dio shouting for time to stop still wouldn't allow Diavolo to see what he does in stopped time, his perception would only be of dio teleporting somewhere else but can't see how he got there.
Speed is irrelevant during skipped time because Diavolo can only inflict harm once time has resumed to normal and KC would definitely not be able to outspeed The World, and even if he somehow did outspeed it, Dio is still conventionally immortal and thus Diavolo's attack, unless he went for decapitation which we have never seen him try to do, wouldn't be enough to incapacitate Dio for long, so he'd die in the next second.
Against Jotaro Diavolo has a better chance since if Jotaro gets sneak attacked the best he could do is try to take Diavolo down with him.