Yes there seems to be a bug here. If you create a character, attach a run animation, then keyframe simulate physics (body instance) it initially works as expected. The character runs then collapses. However after making adjustments on the sequence, it seems to reach a state where once you click simulate the characters no longer run- they revert to their A-pose, any objects with physics enabled are not affected by by the sequencer at all. It feels like the connection between the simulation and the sequencer is not resetting correctly… it completely breaks. This makes the use of physics in sequencer pretty redundant. Shame as it could be really powerful. Has anyone else experienced this?