I ran into this, as well.
The problem was that the automatic HMD tracking stuff didn’t take into account the rotation of the pawn. If your pawn is rotated in any axis (most likely yaw from your player spawner being rotated in the level) then you’ll end up with the HMD tracking axes being misaligned.
Just make sure your camera component’s parent component is always aligned with the world axes and you should be okay.
In the likely event that you need to rotate the pawn (for seated experiences, for example) I posted a fix as part of a bug report on this issue [here][1].
The easiest thing to do for now would be to make your own CameraComponent which extends the basic CameraComponent, and override the broken GetCameraView function with one that includes the fix above.