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Physics constraint not working with ThirdPerson Character

My goal is to keep the player character within a certain range away from a point. The max distance player can move can be changed during runtime.

I don’t know why, but for some reason physics constraint doesn’t work with the character as if the constraint didn’t exist.
I constrain the CapsuleComponent of the TP character to a separate actor. I changed it’s object type to “Physics Body” and have it use the default Pawn collision responses.
However If I do the same to a sphere component added to the TP character it works perfectly fine.

Pls help.