I tried to do the location offset. It didn’t work because when the capsule is offset, the collision changes and then a new location offset is applied, this happens continuously so the character starts to move erratically all over the place and it’s impossible to control him. I don’t know how to prevent that.
So as my code is now, the rotation is applied to the root bone and it’s working very well (no jitter and no floating at all, ever). The only issue now is the collision, that’s why I wanted to add more capsules. I added a new capsule but it doesn’t work for movement collision, but it does work for generating overlap events and stuff like that (I used one parented to character’s head bone to check if the character’s head is above water when he is swimming, and it works well).
If I could somehow cast hit events from this new capsule to the original capsule and make it affect the character movement it would solve my problem. I would reduce the original capsule to the size of the pelvis and add one or more new capsule parented to the root (or other bones).