Not many people will make you a whole example. Maybe post a picture of two if they have time to open the editor up and create it.
Your capsule component can be rotated by selected itl ike you have so its yellow then presssing E and moving the rotation handles. You cannot do this if you just deleted the first person character and replaced him with a spaceship model.
WHat you can do is make a new character or pawn class (Content Browser → right click → blueprint class → character or pawn and setting up the character exactly how you’d like, even copying stuff from the stock 1p or 3p character OR you can select the “Capsule Component” from the components list and then go to the details panel which you have open in your picture it looks like (right hand side) and changing "Capsule halfheight and capsule radius till it fits your mesh as closely as possible.
So in order of easiest down
Rotate Capsule Component
ResizeCapsule Component?
Create a new, custom pawn
Create a new, custom character
Don’t forget to accept an answer that best clears your question up or answers it so when the community finds your question in the future via search/google they know exactly what you did to fix it/get it going.