The "LookAt AimOffset" animation node does not recognize the interpolation setting on its assigned Blendspace. This causes the animation to snap to positions instead of smoothly rotating to them.
This issue was reported and tested in 4.19.2 (CL-4033788). This was reproduced in 4.20.3 (CL-4369336), 4.21 (CL-4489857), and Main 4.22 (CL-4513312)
Results: "LookAt AimOffset" animation node does not interpolate when changing the "Look At Location" value, it will instantly snap to the Blendspace position.
Expected: "LookAt AimOffset" is using a Blendspace for it's calculations and it would also use the interpolation you specify in the Blendspace
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-65910 in the post.