Hi,
I wrote (yet another) physics interpolation solution (for Godot 4). It's more limited than lawnjelly's smoothing addon in that it can't handle RigidBody2D/3D, but since many games don't use these types of physics, it may still be useful because the setup doesn't require any custom nodes or changes to the tree structure. CharacterBody2D/3D and other node types are supported.

Why physics interpolation?
The _physics_process
by default runs 60 times per second but the frame rate is typically synced to the screen's refresh rate, so if anyone plays your game for example on a 75Hz or 144Hz screen there will be a noticeable jagged movement on all physics-driven animations. So much so that this was a showstopper for me, hence I wrote this node class.
Usage:
The basic usage is to simply add the Smoother node as a child to your scene root, for example, a level scene. By default, it will then automatically interpolate the position
of any nodes (including nested ones) that have a custom _physics_process
. You can also add any other property for interpolation such as rotation
or even custom properties.
Resource and Documentation
Check the documentation for other settings and info.
Here's a sample project with a basic 2D and 3D scene.
And a YouTube video that introduces the node class and ways to use some features, such as performance optimisations for bigger projects where you don't want to interpolate off-screen sprites.

I submitted this to the asset library but it's still pending.
For Godot 3, I guess it should be quite straightforward to port it to GDScript 1.
Lastly, I really appreciate that my company introduced "20% time" which actually allowed me to work on this little project on Fridays and get paid for it. We're not using Godot (yet), but there is some interest for future projects.
Let me know what you think and if you have any suggestions. I'm fairly new to Godot, so there may be some things that I'm not aware of.