First Person Socket Not Moving While Looking Up and Down

Hello! I am having trouble with the first-person skeleton, and I was hoping someone here might be able to point me in the right direction. I have an item that I can pick up by pressing E. When I pick it up, it binds to the hand socket on the first-person mesh, the one that comes with the template. When I look around, it seems to move, so far so good. I then do a line trace from the item out in front of it. That is when it breaks. The line trace does not move up and down when I look around. I made everything visible in multiplayer and took a screenshot to illustrate the problem:

On the left I am holding my item and looking up. The item and the first-person skeleton look correct in first person, but the line trace is way too low. On the right I have a second character looking from the side, and they can see that the line trace is working properly but the first-person skeleton and my item have not actually moved.

The line trace is working: it is going straight in front of my item like I told it to. The item is attached properly (I think): it seems to be following the socket on the first-person mesh just fine. The problem is the first-person mesh, it looks like it is moving when I look around, but apparently it is not really moving.

I do not think it is anything to do with replication. This same problem happens regardless of whether the client or the server is holding the item, and everything is replicated anyway. Still, I do not know of any reason other than replication for why the item moves up for whoever is holding it but looks different for the observer. Then again, a replication error would not explain why even the person holding the item does not see the line trace working right.

Why is it that my first-person mesh and item seem to move in first person perspective but apparently don’t according to the line trace and the other observer? Any pointers would be great, I have been struggling with this for hours.

Thank you so much for your help!