I am currently simply setting the collision capsule half height and apart from the jittering problem it seems to work.
I have two replicated events: one for serverside so that the player is able to walk under obstacles and second one for clientside so that the camera moves. Any help is appreciated!
Crouch and multiplayer usually works fine if you just use the builtin “Crouch”, “Uncrouch” and the already existing (and replicated) “IsCrouched” or “IsCrouching()” function of your character/character-movement component. You could even set the crouch height of the capsule there already. If you would recreate this yourself then you have to take care about tracing obstacles above your head as well. If you use the builtin crouch this is done for you already and works fine. For example if a client would uncrouch while he is below an obstacle it would remain crouched (even the variable remains crouched) until he moves to a place without obstacle above (where he uncrouches and the variables are set as well).
Never mind, I got it working by setting “Can Crouch” true in the character movements Nav Movement section. Only problem is that the crouching isn’t smooth since the camera is attached to the collision capsule and moves down when the capsule shrinks.