Mounting other entities on item_display, block_display, or text_display entity causes inconsistent behavior

When an item_display, block_display, or text_display entity mount another entity, its position updates can be smooth or wiggle.

Sometimes this behavior seems to change when pause the game.

How to reproduce:
Run this command

/summon item_display ~ ~ ~ {Tags:["Test"],Passengers:[{id:"minecraft:block_display",block_state:{Name:"minecraft:tnt"}}]} 

Run this command with repeat command block

execute as @e[tag=Test] at @p run tp @s ~ ~ ~

Move the player and make sure the entity follows it, then pause the game a few times while continuing to move. This sometimes causes entities to behave jerkily.

In the attached file, I mounted block_display on item_display, but this bug seems to occur regardless of the entity on top of it