2d camera follow script shaking

Hi, I just implemented a smooth camera follow script with some clamping to prevent the camera from going out of bounds.

The problem here is that when the camera moves, the sprite looks like it's jerking and stuttering ever so slightly (causing the pixels to look a bit blurry). The camera has a noticeable stutter on it too when playing normally.

Here is the script that handles camera movement:

         float height = 2f * Camera.main.orthographicSize;
         float width = height * Camera.main.aspect;
 
         Vector3 targetPosition = target.position + offset;
         Vector3 smoothedPosition = Vector3.Lerp(transform.position, targetPosition, smoothFactor * Time.fixedDeltaTime);
         smoothedPosition.x = Mathf.Clamp(smoothedPosition.x, leftBound + width / 2f, rightBound - width / 2f);
         smoothedPosition.y = Mathf.Clamp(smoothedPosition.y, bottomBound + height / 2f, topBound - height / 2f);
         transform.position = smoothedPosition;

This code gets called from the FixedUpdate() method. To me it seems like it jerks every time the position gets updated (which results in rapid stutters)
I've tested it with only "target position", it still gets the same effect (so it has nothing to do with the smoothing).

I've tested it with adding an extra lerp on the final transform.position, no changes.

Lastly, I've tried with LateUpdate() and LateUpdate() has a noticeable improvement, but there are definitely still slight stutters as well.

Unsure what could be the problem. Any advice? Thank you!