I think I resolved the issue! So hopefully this post might help someone if they are looking for a solution to something similar. And just to nip any confusion in the bud, I went with .875 for the scale instead of .8 since I ended up preferring how that height looked, but I think this will work for any scale.
In the child blueprint, instead of changing the capsule component scale in the transform section to .875, I went under shape a couple sections below and multiplied the default values of 90 for half height and 35 for radius but .875.
I also changed the mesh scale under transform to .875.
Then I just kinda cleaned up the blueprint alongside the minor tweaks so it looked a bit neater.
Instead of just having the location on the break hit result be adjusted by 40 in the multiply node, I used the capsule radius so it would change based on which character bp I ended up using.