Is this ai bot or player controller driven.
For AI bot you have things like acceptable distance, or whole EQS system.
For player controller just add another capsule (Horizontal) with collision that prevents fox from going into walls.
Is it something like this?
I tried adding capsule collision to the face and legs but the results were the same.
For testing, make default capsule bigger, increase its diameter to cover whole fox.
If this stops fox from penetrating walls, you know it is problem with capsule.
So then add that horizontal capsule and copy collision settings over from default capsule.