Pick-up object and Character Capsule Collision Issue


I recently added locomotion to my game by creating a dummy character and have my pawn follow it. However if the player is carrying an inventory item in his/her hand and this inventory item collides with the dummy character capsule, then it messes up the locomotion (player starts moving backwards etc.). I tried to solve this issue by creating a new object type for collision but when I change the object type from world dynamic to the new object type the player can no longer pick the item. For picking up items I’ve been using the same blueprint that was included in unreal engine vr template. Has anyone had this issue and solved it???