I am “glad” I am not the only one annoyed with capsule issues for non-bipeds, I just posted a thread about it. I thought the issue was only about the shape of the capsule, but now I realize the whole ACharacter class is made to work with such a shape profile (but why exactl?).
This is a major issue, I am surprised UE4 has such a basic issue with no official workaround after so much time in existence. Guys at Epic should really be looking into this. I guess in the meantime we have to base quadrupeds on APawn?
Update: I have been looking at the engine code, the capsule shape concept in not only used in ACharacter, but also in UNavMovementComponent (see UNavMovementComponent::UpdateNavAgent, FNavAgentProperties) which is quite bad… So indeed changing this would involve much code refactoring, but it is needed I think. Or maybe a less radical change would be to enable rotation of the capsule.