Easiest replication is to use the VR template for a new project.
Load the MotionController Map
in World settings, turn on world composition
Run Preview in VR Mode.
The teleport fails, hands don’t align.
I originally found this in my project when I replaced teleport with a simple joystick locomotion which worked until I needed gravity. When I changed my parent class for the VR Pawn from Pawn to Character, the level fails to load, skews, and hands disappear.
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After a lot of trial and error I found that this isn’t a bug after all. It is related to the character now having a kill distance when falling. I found that when you move the landscapes to transform Z of 0, it is the top of the landscape (mountain tops in my case) which is at 0 and the actual ground was several thousand down. So I would spawn and the engine would see my character at -2000 and kill it.
I moved my entire landscape up so that the bottom was at 0 (Z transform of 2000) and now I have hands in VR and can control the character again.