I tested using the Overworld Map from the Sample Map, which has a tile size of 140x100, and set scroll type to loop both
When running the test, I noticed that The character's movement stutters significantly. Even in the build version, this issue still persists.
How can I fix this issue if I want to use a large overworld map and enable looping both vertically and horizontally, similar to the overworld maps in most RPG games?

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Running both does produce lag on such a large level. The performance decrease is coming mainly from the amount of tiles being placed on such a large map.
There is a trick you can do that increases the performance.
Additionally you can get rid of the normal walking jitter by changing out some code in the CharacterOnMap.cs script.
Hopefully these workarounds can help while they tackle the performance issues of massive tiled maps.
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Thank you! I tested the code fix you suggested, but the issue with movement and stopping between tiles still persists.
I also tried converting the tile map into a background image, which fixed the issue, but the tile animations disappeared. Additionally, when moving to the edge of the map, the area beyond it appears empty.
It seems that the current system may not support the loop for backgrounds properly.