I figured it out on my own. You have to pinch to zoom in (horizontally) until you reach maximum zoom, release, and then pinch to zoom in again to try to zoom in even more. It will say "Snap to Grid Off" on the top and then you can shift the notes freely.
That should really be documented somewhere, but I did eventually find it after messing around long enough.
This is the label that will be displayed in the TImeline once you are zoomed in all the way to indicate the new snap status. BTW affects also the manually moving of the Playhead.
This is the article on Apple's website that explains the details
To turn off "Snap to Grid," pinch-zoom to the maximum level in Tracks view or when editing notes in regions. Pinch-zoom again and "Snap to Grid off" will appear on top of the Tracks area.To turn "Snap to Grid" back on, pinch-zoom out.
Hope that helps
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