I thought so, and I bet on a Listen server, it only worked for Player 1.
From what I can tell, in your case you’d just want to move the player locally and let the Replicate Movement checkbox do its magic. This would update to the clients and the server alike. I’m thinking that you’re just overcomplicating it 
(Pot calling the kettle black!) I’ll give it a try tonight if I can and report back.