Made a easy hack to solve jittering when standing still. Jittering should still be present when moving, but at least it is less prominent when moving.

src/Engine/Collision/CollisionSystem.cpp

@@ -12,6 +12,7 @@ void CollisionSystem::UpdateComponent(EntityWrapper& entity, ComponentWrapper& c
     if (!boundingBox) {
         return;
     }
+
     ComponentWrapper& cTransform = entity["Transform"];
     EntityAABB& boxA = *boundingBox;
     bool everHitTheGround = false;
@@ -86,10 +87,12 @@ void CollisionSystem::UpdateComponent(EntityWrapper& entity, ComponentWrapper& c
             glm::mat4 modelMatrix = Transform::ModelMatrix(boxB.Entity);
 
             glm::vec3 inOutVelocity = (glm::vec3)cPhysics["Velocity"];
+            bool notMovingxz = glm::all(glm::lessThan(glm::abs(glm::vec2(inOutVelocity.x, inOutVelocity.z)), glm::vec2(0.01f))) && prevPosIt != m_PrevPositions.end();
             bool isOnGround = (bool)cPhysics["IsOnGround"];
             float verticalStepHeight = (float)(double)cPhysics["VerticalStepHeight"];
             if (Collision::AABBvsTriangles(boxA, model->Vertices(), model->m_Indices, modelMatrix, inOutVelocity, verticalStepHeight, isOnGround, resolutionVector)) {
-                (glm::vec3&)cTransform["Position"] += resolutionVector;
+                //Move the position to previous position if it is not moving in the xz-plane, else resolve with the resolution vector.
+                (glm::vec3&)cTransform["Position"] += notMovingxz ? prevPosIt->second - boxA.Origin() : resolutionVector;
                 boxA = *Collision::EntityAbsoluteAABB(entity);
                 cPhysics["Velocity"] = inOutVelocity;
                 if (isOnGround) {