Quick answer: Limit Smoothing = false. Position Smoothing speed = 5 (or lower). Drag margins reasonable (0.2..0.4).

Camera follows player with drag margins. Near the room edge, camera oscillates back and forth. Limit Smoothing fights with Position Smoothing.

The Fix

Camera2D inspector:
  Limit Smoothing:        false
  Position Smoothing:
    Enabled:              true
    Speed:                5.0
  Drag Top Margin:        0.3
  Drag Bottom Margin:     0.3
  Drag Left Margin:       0.3
  Drag Right Margin:      0.3

Disabling Limit Smoothing prevents the boundary clamp from re-introducing motion that the position smoother fights.

Verifying

Walk to room edge. Camera clamps cleanly, no jitter. Drag margins still produce hysteresis.

“Limit Smoothing off. Smooth speed low. Steady camera.”

Related Issues

For Camera2D zoom, see zoom jitter. For TileMap Y-Sort, see Y-Sort.

Limit Smoothing off. Steady.