I use FCP 7.0.3, everything is fully rendered.
Re-checking the file exported from After Effects in FCP’s Viewer window, it looks fine!!!
The jagged edge only appears when I put the AE rendered file in FCP sequence.
The video footage below does not show any sign of interlacing, therefore I am pretty sure it does not relate to video monitoring or something.
My sequence setting:

Very interestingly, if I change the Sequence, Settings…, Field Dominance from “None” to “Upper (Odd)”, it shows perfect smoothness.
Strange…