They fidget because the 'order' of things happening is wrong.
I assume you made the blocks solid so you can jump on them.
Now. In real life when you push a block, 2 things are happening. You make the block move, but it is the block that moves you. If the block is not moving, you are not moving. So in fact, it is the block that moves, and you (as a rigid body) just keeps the same distance.
In C2 there is a lot more happening. First you collide with the block. You stop, not by keeping your distance, you stop by the given deceleration (in the property's). So, you shoot over, and collide again and again till you dont move. On each collision the platform behavior performs a 'push out of solids' algorithm. Also the block will collide and perform a 'push out of solids' algorithm. Meaning, things start to go a bit right when the deceleration is done and over with. Till then, the player is pushing it self to the wrong direction.
I think (assuming that the player is not solid), that you should think the other way. Dont push, always pull. Make the block pull the player (what looks as the player pushing, make the player pull the block (what looks as the player pulling). In my head this makes sense, but guess i got to try it myself first.
If the player now collides, with the intention to push, it is the block that moves first (actual pulling), and player (not holded up by a collission) just keep its distance.
If the player now collides, with the intention to pull, it is the player that moves first, and the block is just following.