I have found the solution for no. 1 by setting Homing Acceleration Magnitude to 10x of Initial Speed. The projectile can hit right at the character now.
As for no.2 so what’s the best component parameter to pass as HomingTargetComponent since the character capsule is not the most accurate?
Yes Replicate Movement is enabled. Anyway, I have found the reason for no.3 it is due to the homing projectile were spawned in server event and when replicated to the client the HomingTargetComponent which used the target character capsule’s object reference is not valid in client’s game instance as the memory pointer of the capsule is difference. The client has access to target’s PlayerState but the question now is how could I get PlayerCharacter from PlayerState?