Although I wasn’t able to replicate the head clipping bug, inside of your character you have these three options checked
I assume it is to rotate the arms along with the camera, but it is also rotating the capsule collision and all of its children (including the camera).
Unticking these boxes should solve your issue. As for the arms, I would recommend either childing them to the camera or spring-arm through C++, or in blueprint, just ignore the inherited one and add a different Skeletal Mesh (also childing them to the camera or spring-arm).