Unity smooth camera rotation on Mouse Drag

Camera stuff is pretty tricky… you may wish to consider using Cinemachine from the Unity Package Manager.

There’s even a dedicated forum: Unity Engine - Unity Discussions

Otherwise you would need to implement your own filtering on the inputs or movement accumulator variables, perhaps something with SmoothDamp, or else a simple low-pass filter with historic averaging.

Lerping to smooth things out:

In the case of input smoothing (implementing your own input filtering):