How do you make this effect?

It’s called edge softness on after effects blur
It is the blur on the edge to make is look better

First, you can use Streamable to share videos here.

This is your video:

Try this:

  1. Apply these 3 filters in that order.
  2. Uses the shown settings (or your own) for Mask: Simple Shape.
  3. Blur: Gaussian, at your discretion

Demo:

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