Have you also tried using the same value for Project Settings->Debug->Settings->Force Fps and Project Settings->Physics->Common->Physics Fps? For example 60 for both of them. When I change one of them the movement jitter appears but when they are the same, it is buttery smooth. If you haven't tried this, maybe give it a go.
Kakule
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A member registered Mar 21, 2020 · View creator page →
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Space shoot-em-up game where you defend your planet from ufo's.
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Very nice and cozy feeling. Playing felt great and music was soothing. Congratulations. Also one minor suggestion. The character appears jittery when moving. I found a way to fix it by forcing the game fps to 60 which is the default physics fps. Also the character movement was handled in _physics_process() in my case. This might be a solution to the jitter. Great job with the game!