When using the Move tool and dragging the "plane move" rectangle widget, the object follows the mouse position (good).

However when dragging on the axis, the object does not follow mouse position (or mouse position projection onto the axis line) on screen. The smaller the angle between view direction and the axis being dragged, the more mismatch between object positioning & mouse cursor.

3D tools like 3dsmax & Maya behave better in this regard; the object does follow the mouse position.

Can be reproduced with just a sphere in an empty project, and moving it along the transform axis that is not perpendicular to view direction.