iPhone 12 Pro Max - Camera Blur when Moving

I have finally switched to an iPhone after 10 years on Android so please help me figure out if this is a hardware / software bug or if this is normal behavior.

I noticed that when I'm on a video call (through WhatsApp or Facetime), my camera lags most of the time. By lag I mean that if I move my device quickly, the image blurs quickly. It's as if you're shooting with a low res camera that doesn't have image stabilization.

To demonstrate, I placed a facetime call from my iPhone 12 Pro Max to an iPhone X, both on the same wifi network. I screen recorded from both phones and I'm sharing the videos below:

1. iPhone 12 cam as seen on iPhone X screen: https://youtu.be/aYxmzlx_9zA (you will notice the blur here)
2. iPhone X cam as seen on iPhone 12 screen: https://youtu.be/GS4Jp9w6Aj4

I hope someone can help.