Hi. Thanks for the detailed answer! I suspected it had something to do with precision.
My use-case is more reasonable than the demo I attached above, as it was mainly an extreme example. In short, I'm trying to create a space game/simulator with massive distances in relation to scales. In practice, I won't get to the extreme distances shown in the demo, but enough to notice some minor stuttering.
I'm thinking of ways to circumvent this limitation. Do you think it would help if I now and then move all active objects in the layout, including the player, to position 0,0? Thus, they would maintain their relative distances, but the "active zone" that includes the player and the player camera would never move too far off the center.
Basically, what I mean is that when the player gets too far away, he's moved to position 0,0, but the world around him is moved as well.