Using Unity 2018.4.5 and Oculus 1.38
When I hold an object (simple scene with just a cube) in my hand, then the movement of this grabbed cube is very jittery and not smooth at all.
Using OVRPlayerController with LocalAvatar in TrackingSpace and AvatarGrabberLeft and Right inside this LocalAvatar.
I set the Fixed TimeStep in the Project Settings to 1/72 (0.01388889).
I uploaded a video of this behaviour: https://youtu.be/AoJ_d0d2Dq8
It's not as obvious in the video as it is in VR, but I think you do see the issue at the edges of the cube with the stuttery movement.
Interestingly, when I throw away the cube, the movement is smooth. Also the movement of my hands is smooth, it's only the object I'm grabbing that stutters.
Any idea how I can prevent this?