UPDATE on this issue.
I am
SHOCKED I have not seen more people complain about this. It breaks the combat in 3rd person when using a controller to the point of being unplayable!!
I have confirmed that KCroxtonJr is 100% correct in what causes this issue. And I do not think it can be fixed without Bethesda patching it.
Here is a video showing the bug in action.
0-10 - Shows that it does not happen with weapon put away
10-20 Showing the freeze. Note at all time the right stick is pushed so that the camera should constantly move, but whenever the left stick is pushed it freezes for a moment.
20-30 Shows how extreme it can be while playing. In this example I am HOLDING the right stick all the way to the right, it should spin constantly, however it freezes every time the left stick is moved!
35-40 Shows how it does not happen if you push the left stick all the way so your character moves fast.
I then proceed to show the same issue going the opposite direction.
The issue is also present with mouse and keyboard when CAPS is on to lock walking/slow movement.