Sorry, I didn’t notice you had already placed the mesh on the root.
There are a couple of things I’ve seen mentioned in several posts:
First, you should disable Replicate Movement on the object you’re grabbing (in some cases that alone fixes the issue).
then It may not be a replication issue, but rather an interpolation issue
The server is sending the correct updates, but the client-side interpolation can’t keep up with the sudden positional changes generated by the VR controller. In VR, the hands update every frame with very sharp movement deltas, and if the object is trying to replicate its transform while also following the controller’s instantaneous position, jitter appears.
Since you’re using VR (and I don’t have a headset to test it myself), here are some posts that discuss this behavior. They don’t talk about VR specifically, but they do show possible solutions to reduce or eliminate jittering.
Another possible solution is this video, which shows how to set up physics to simulate correctly in multiplayer