OS Monterey Trackpad Too Sensitive, Changing Preferences and Resetting PRAM Doesn't Help

Maybe try deleting the Tracpad .plist preference files from "~/Library/Preferences" folder in case one of them is corrupt or has some odd setting embedded in it. On my Mac, I see two possibilities:

com.apple.preference.tracpad.plist
com.apple.AppleMultitouchTrackpad.plist

After deleting these two files, log out of your macOS user account, then log back in. macOS should recreates these files with default settings. See how the Trackpad behaves.

Have you ever used any third party app to modify the trackpad settings which may now be causing problems?

Have you tried booting into Safe Mode to see how the Trackpad behaves?

Try booting into Internet Recovery Mode (Command + Option + R) to see how the Trackpad behaves.

Also, check to see if you notice any swelling of the battery. Does the Trackpad appear to be raising a bit higher than normal? Does the laptop still sit firmly on a flat table top (assuming all four rubber feet are intact)? A swollen battery can change the behavior of the Trackpad.

Basiliog wrote:

Using a 2017 Macbook Pro 13 inch, i7 3.5 Mhz. Since upgrading to Monterey Trackpad is overly sensitive. Hovering over buttons or links acts as a Click. Cursor jumps out of position when entering text, especially in Mac Mail. Have set Speed to Slowest and Pressure to Highest in Preferences. Disabled three finger scroll and Hapatic and Force Click buttons. Have closed all Open Windows and Reset PRAM. None of these remedies has solved overly sensitive problem or cursor jumping out of position. Have run Disk First Aid on internal HD, no problems.

Is there any solution?

What exact macOS is this...?

All I see is <iMac, macOS 10.13 > (?)

verify your software is up to date…

The current stable release of Monterey including bug fixes, security updates is macOS 12.7.3

Keep your Mac up to date - Apple Support