The new damage tilt physically moves where the player's cursor is looking, rather than just tilting the screen in a direction depending on incoming damage.

The damage tilt never impeded gameplay like this. From my testing, the forward and back tilting seems to be purely visual for attacking mobs and breaking blocks (even when the tilt moves your cursor off of what you're aiming at, your input will still connect), and thus the desync is only visual. This is what I refer to when I say desync, as what you are aiming at is not what your cursor is over.

I want to stress that I am not suggesting that the tilt should make your inputs miss instead of desyncing, I'm suggesting that they shouldn't move the cursor at all. It's a damage tilt, but only the left/right wobble actually tilts (and thus the left/right wobble is the only one that doesn't cause issues) while the front/back wobble physically moves what you're aiming at.

This new cursor desync created by the forward/back damage tilt makes combat feel nauseating and unresponsive. I'm honestly not 100% sure how to solve this without removing the forward/back damage tilt entirely. However, in its current state I do not think the current behavior is healthy for the game's combat and general game feel. This should be evident by people asking for a toggle at MC-259197.

The best solution to this is to add an option to revert to the old damage tilt behavior, you should not have to completely disable the tilt entirely to not be at a disadvantage due to the visual confusion caused by the cursor movement.

Or alternatively, the forward and back damage tilt should be removed because they impede gameplay unlike the left and right damage tilts, and instances where they would be used are replaced with the sideways tilts.