Multiplayer game. Testing locally on computer. 2P + not gaining control of character

So I’m making a multiplayer game and have gotten some basic network stuff working to include the main menu and host session, etc.

When I try to test locally on my own computer, my server character gains control of the character but any clients join the session as a free floating camera.

That being said, I tested online with my friend and when he joins he spawns in as normal and we are able to play together.

The editor gets this error:

Thanks for the help!