When I move the character this camera jitter/hiccup happens. I tried moving the movement logic from _physics_process to _process but that doesn’t help.
I also tried:
to set the camera global position to character’s position,
What is the cameras process_callback set to?
Since it is not always jittery (at least that’s how I make it out in the video), it could also be unrelated to the camera. Have you monitored the performance?
The problem is likely that your player movement is jittery. In you video only the background is ‘stuttering’, not the player itself.
How are you moving the player?
If you move the camera independent of the player, do you also get the stutters?
You could try to interpolate the position change of the camera instead of directly setting it. This should make the camera movement ‘smooth’.
You should also move the movement code back to _physics_process since move_and_slide does physics calculations. You can then optionally turn on physics interpolation to avoid jittering when physics ticks and frames are not in sync.