Reproduction steps:

# Open the attached project
# Open the “/Assets/Contact bug.unity” Scene
# Enter the Play Mode
# Observe the 3 Capsule GameObjects

Expected result: No jittering is seen
Actual result: All 3 Capsule GameObjects jitter

Reproducible with: 2021.3.12f1, 2022.1.21f1, 2022.2.0b13, 2023.1.0a16
Could not test with: 2020.3.41f1 (hasModifiableContacts property is not available)

Reproducible on: Windows 10 (21H2)

Note:

* The Capsule GameObject on the left has hasModifiableContacts disabled and it seems like it’s not jittering, but in reality, it’s still jittering but way less than the GameObjects with hasModifiableContacts enabled
* None of the GameObjects are sleeping after hitting the wall