Hey Czoog,
If you go into the ‘FirstPersonGameMode’ and switch the ‘Default Pawn Class’ to FirstPersonCharacter, it’ll correct the issue that you’re currently seeing in 4.8.0 Preview 3. However, I have verified that this was once working correctly in 4.7.6 so I have entered a bug report to our developers. This report can be referenced as: UE-16140.
If you have any further questions, please let us know.
Have a great day!!