Here's a twitch clip depicting this issue

Related:

Motion smoothing option for hands. (Accessibility)

Big issue, makes smoothing pretty much unusable except for in handheld with no character movement. This should be super straightforward to fix: just move the camera at the same time and amount as the player before doing any smoothing.

It should smooth all movement except forward and backwards, simple fix.

When you move forward the camera still goes through your head and it is awful for the streaming camera if you're streaming or recording.

I haven't used this option since a long time ago, they knew it was bugged but they never tried to fix it.

Boosting this since the current smoothing sucks garbanzo beans

Clipping the camera into model clothing from just walking is a risk for content creators to be banned on their platforms. It makes using the feature more of a risk than it's worth, even for being such a nice feature to have.

This camera issue breaks immersion and makes the camera completely unusable in many instances. If this is "working as intended" then I don't see the logic behind this change in camera behavior at all, unless its a bug (then it should be addressed) because camera viewpoints don't magically leave people's grip and fly through the fabric of 3d-space to clip through the holder's body in real life under any circumstances.

yes we need to revert back to previous camera smoothing. It sucks to have smoothing on and walk around with the camera constantly clipping through.