Camry Hybrid Camshaft Sensor Defective

Sounds like it. Those are classic symptoms. Any engine misfire codes showing up? Have you checked the crankshaft sensor as well? Sometimes a bad crank sensor can mimic camshaft sensor problems. Worth a look before you start throwing parts at it.

I have not specifically checked for misfire codes, but I will do so. Regarding the crankshaft sensor, is there a straightforward way to test its functionality, or is it best practice to simply replace it to rule it out?

Testing the crank sensor usually needs a multimeter or scope to check the signal. Unless you're comfortable with that, I'd say take it to a decent shop. Those symptoms, especially with a check engine light, point strongly to a sensor issue. It could also be the encoder wheel on the camshaft itself, which means a bigger job.

I took the vehicle to a trusted workshop, and they confirmed that the camshaft sensor was indeed defective. It turned out that the encoder wheel on the camshafts was defective as well. The total repair cost was 695€. The car is now running smoothly.