glitches when panning on rendered clip

[RickMen]

I tried applying Mercalli 2.0 (using VS2018) on the same clip and the glitches were still generated on the rendered clip.

Update: Rendered the video using Mercalli 5 with the interlaced Cineform codec and the video came out absolutely perfect (other than my camera technique). No distortions or artifacts in sight. I will upload the file to YouTube as well as render an MP4 file using Handbrake.

Hi Rickmen,
If you go to render the file go to "Custom" under the "Share" tab. Format; Microsoft AVI files [*.avi] Then click on the options cog wheel . Under "General" choose 29.97 for the frame rate. Frame type: Upper field first. For the Frame size choose 1920x1080 if shooting in AVCHD or 1440x1080 if shooting in the HDV compatible mpeg-2 mode on your JVC HD40 (which is one of the few camcorders I know that has this option!). Under the "AVI" tab choose GoPro Cineform for Compression (GoPro owns the codec) If you click on "Configure" set the Encoding Quality to Medium or High HD and leave the rest. Click OK (twice). See that your selection is reflected in the "Properties" box on the main "Share" tab. 'Start" the render with Smart Render and hardware encode acceleration turned off.
The file size will be huge but I hope you find that it solves the rendering glitches. You can then delete the large file after uploading it to YouTube, rendering it to a smaller MP4 using Handbrake (add TFF=1 in "Advanced options") or other. See if you get a good render from VideoStudio first.

This worked, no glitches on the rendered clip, thanks Vdanny. In addition to the above I switched off the de-interlace filter in Handbrake.

Picture-quality wise it's passable with a slight degradation (I guess I panned too quickly on the original source clip so there isn't much I can do about that).

Thanks everyone for your input and advice.