Vibration Reduction Setting Causing lens to jump

I doubt the part in there right now can be fixed easily, since the issue may be a worn out flex cable going to the stabilization assembly or a damaged stabilization assembly.

Replacing the entire lens assembly is a much more reliable way to fix the issue, since you won’t risk damaging the lenses or get dust inside the assembly. A replacement lens assembly (without the image sensor) can be had for only $25 on eBay.

However, replacing the lens unit requires desoldering the motherboard from the shutter button board, and in my experience re-soldering this part is a pain, but it may be easier on this model (I have a L310, which is very similar).

Nikon Coolpix L330 Lens Barrel Assembly Replacement