However when the player leaves the "camera" box because they are not overlapping it anymore, the screen jumps to the players position very sharply. How do I smooth this out?
Well it gets that instant jumping into position because you are setting it PlayerAnimations.
Use LERP to get that that "camera catching up to player" effect.
Every Tick | Box set X to lerp(Self.X,PlayerAnimations.X, 0.5)
x Is overlapping PlayerAnimations | Box set Y to lerp(Self.y,PlayerAnimations.Y, 0.5)
You can increase or decrease the scroll speed by replacing the 3rd element of the lerp which in the example above is the 0.5 quantity.
Try replacing it with 0.2-0.9 and see what best fits your needs.