There is a weird camera glitch that I can't figure out

Whenever I move my camera up/down, the entity’s hands stretch. When I move side to side, the entity flops sideways.

sorry for the choppy video, but It keeps happening randomly on games, and I think it is a glitch in the system.
PlayCanvas | HTML5 Game Engine
here is the game.

This is because the scale of the capsule is 1, 1.2, 1 and the Y scale is being applied to the camera child entity. This is what is causing the stretching of the view.

The camera entity and it’s parents scale need to be 1, 1, 1.

If you must have the capsule mesh stretched to 1.2 on the Y, then have it as a separate child like this:

Forked project:

Oh, I actually didn’t know that. Thanks for the tip!