Changing nav mesh agent radius breaks navigation

I have a VR project which uses the VR template teleportation for navigation. I have a nav mesh with an agent radius of 35. The navigation works fine, I can move anywhere I’m supposed to. However, I want to reduce the agent radius to allow more detailed navigation. Whenever I reduce the agent radius below 35 navigation breaks completely, and the beam for teleportation cuts off in mid air and I cannot move from the starting postion (I have attached screenshots to illustrate this).

I have tried multiple different agent radius values, tried re-placing the nav mesh from scratch, and changed all the project navigation settings with no success. Is there a setting or step I have missed. Thank you for your time.

Teleportation with agent radius 35.

Teleportation with agent radius 10. In both cases navmesh preview looks fine.