I thought I might resolve this since I now know whats actually going on with the cameras.
There is an option in the Class Defaults of Player Controllers called "Auto Manage Active Camera Target"
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True: the camera switches automatically, when posessing a pawn. If the pawn doesn’t have a camera attached, it “creates” one on the world location of the pawn and uses this one.
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False: you’ll have to control the camera manually with functions like “Set View Target with Blend”, which takes an actor as input and uses the active camera of that actor. The camera will not automatically change on pawn posession
The way the camera flow works is like this:
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Spawns Player Controller that has a Camera on the World Location: 0,0,0
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Waits for a Player Pawn that gets posessed by the Player Controller to use its camera or waits until the camera gets set manually by code
So I guess the best way is to set the view target on Begin Play inside the Player Controller and not using dummy pawns for, in this case the “Wait for player” widget view.
For the actualy character spawning, use one of the above answers.