The problem is that the keyboard always associated with controller 1.
What you need to do is just spawn the character and possess it with controller 1 (no need to spawn controller 2 unless you’re on a console).
You need a mechanism to distinguish who gets the input otherwise events would fire for both characters. Simply create a bool variable and expose it on spawn to mark who’s player 2. Then use branch nodes to prevent player 1’s events firing on player 2 and vice versa.