When I'm standing still camera movement from left to right or top to bottom works fine. But while walking or sprinting when I move the camera, it moves only in one direction(either left or right) until I stop walking or stop sprinting. Sometimes I stop pressing "W" but the character continues to walk or sprint. But I dont have any lags in the game and the game works fine at 60fps.
The only problem that I'm facing is with the simultaneous walking/sprinting and camera movement issue. Please look into it as it never happened before patch 1.31(A)..

I had very same issue, and turning off GoG in-game overlay in Witcher 3 helped. Try it.

I have the same problem. It's so annoying that I do not feel like playing.

EDIT:

Here's what helped:
In nvidia settings I changed:
Maximum number of pre-rendered frames per 1
Preliminary rendering of virtual reality frames on 1
I turned the game not with GOG galaxy only with witcher3.exe and turned off GOG while playing.