Hey everyone I been having this problem with my game and by the looks of it so are many others well I found a fix to this what you want to do is this.....

go to where you have installed it so for example go here

C:\Program Files (x86)\Steam\steamapps\common\Knights of the Old Republic II

then open a file called (swplayer) open it then find this

[Control Options]
Enable ScreenEdgeCameraTurn=1

and change it to 0 so it should look like this

Enable ScreenEdgeCameraTurn=0

then close it but but make sure you save it,

Now reopen the game load up your save file and go to gameplay and click on mouse lock

and there you go no more spinning camara hope you all found this helpful please feel free to let me know if this fixed the problem for you.