Collision shape overlapping causes twitching
Likely mod related as it doesn't occur with a vanilla setup.
The mod causing this bug is Django's Rugs and Tapestries
https://www.nexusmods.com/morrowind/mods/36872
Some (not all) NPC standing on a rug mesh from that mods twitches.
eg. NPC Tuundir in Ald Skar Inn in Ald'Ruhn.
This is on a modded game with the latest nightly on macos
mod loadout openmw.cfg
Short video: https://youtu.be/wDMvLW7Oq2A (screen recording at 24fps. twitching much more noticeable at higher frame rate)
Feel free to close if it's just asset related and/or not interested in collision with replacer meshes