OpenXR mesh location doesn't match SteamVR overlay (or reality)

We’re migrating to OpenXR in 4.27.2 and I noticed our controller meshes are off by an inch or so. I then checked the 4.27 VR Template project and saw the same was happening there, too. I’m using the Valve Index and to compare, I pulled up the SteamVR overlay to see where SteamVR thought the controllers should be. As you can see, they’re off:

I tried with the latest version of SteamVR and even switched to the beta (1.21.12) and still saw the same behavior.

Is this a known issue or am I potentially doing something wrong?

Yeah, it’s a known issue with the controller models supplied in UE4. I reported it a while ago, and it’s been acknowledged by the devs. To fix it, you would have to modify and reimport the models with new poses.