Could you show the scene with this flag:
ShowFlag.Collision 1
So we can see what is going on with more clarity.
Above, it may be difficult to see but it seems the capsule is overlapping the floor. That would bump it up as the run-time collision checks kick in.
I tried to remove collision from my character but it didn’t solve the problem.
That would not help much here, I think. The movement component only cares about what’s at the root (by default) of the actor and that element is the capsule, not the mesh.
Essentially, if you attempt to force the capsule to intersect, the movement component will eject it:
You could try to disable gravity on the movement component and collision on the capsule for as long as the character is sitting. Not sure what other interaction are there in the scene - may be a great idea, may be the worst 