If you have any ideas, let me know.
Any scaled characters fail to work and behave like they were not scaled at all.
I have also tried to calculate the angle myself and feed it to the blend space instead of using the LookAt Node (see below the change in variables).
However, LookAtFunction, FindRelativeLookAtRotation, FindLookatRotation, etc were not able to solve the issue yet.
Any comments highly appreciated!
By the way, in the end of the presentation Jose Villarroel mentioned that any bugs could be sent to him, so I am also trying to contact him.
As an ugly workaround, I can try to modify the position of the target object based on the scale of the character looking (basically move it further down). Besides being an ugly hack, LookAt node still has some blend problems and sudden twists (I would have to play with blending poses and dead blending to solve I guess?).