Do not make the camera jump around trying to find the character when only the character's feet are hidden.

vfx/gameplay_camera.gd

@@ -82,10 +82,12 @@ func _respond_to_impetus(delta: float) -> void:
 	)
 	look_impetus = Vector3.ZERO
 
-func _try_go(where: Vector3, from: Vector3 = global_position) -> void:
+func _find_closest_safe_spot(
+	where: Vector3, from: Vector3 = global_position
+) -> Vector3:
 	_raycast_object.from = from
 	_raycast_object.to = where + (
-		(where - global_position).normalized()*clip_margin
+		(where - from).normalized()*clip_margin
 	)
 	if target:
 		_raycast_object.exclude = [target]
@@ -103,10 +105,26 @@ func _try_go(where: Vector3, from: Vector3 = global_position) -> void:
 		)
 	if target && !allow_losing_target:
 		allow_losing_target = true
-		_try_go(desired_position, target.global_position)
+		var posn_a := _find_closest_safe_spot(
+			desired_position, target.global_position
+		)
+		if target is Character && target.is_node_ready():
+			var posn_b := _find_closest_safe_spot(
+				desired_position,
+				target.global_position + target.height*target.global_basis.y
+			)
+			if (
+				(posn_b - desired_position).length() <
+				(posn_a - desired_position).length()
+			):
+				posn_a = posn_b
 		allow_losing_target = false
+		return posn_a
 	else:
-		global_position = desired_position
+		return desired_position
+
+func _try_go(where: Vector3) -> void:
+	global_position = _find_closest_safe_spot(where)
 
 func snap_to_target() -> void:
 	if !target: return