Ah, okay let me be a bit clearer-
The character is a pre-created class that saves you a good amount of work. The Capsule Component has to be the base- by default, it has physics enabled, but it is locked on the X and Y axes so it doesn’t fall over. Anything BENEATH that in the hierarchy, if you enable physics on it without constraints, it will ragdoll. So: Yes a character has Physics enabled, with constraints, and only on the Capsule component.
You can do the same with a pawn, but since you want a horizontal character you’ll HAVE to use a pawn and manually add physics to the ROOT, and only the ROOT. 