After having problems that my character starts floating above ground when starting play, I could reduce my problem to a minimal setup with a very basic cylinder skeletal mesh (40 cm height) with just 2 bones, even removed the animation blueprint for the simple test animation to reduce further.
Also having no physics asset for this test mesh, as I did suspect that floating to be caused by that, which is not the case.
Made blueprint BP_Cylinder for this (derived from Character class). Adjusted Capsule Shape and Mesh Transform so that the capsule matches the cylinder for collisions and can be properly placed on ground:
Create a copy of BP_Cylinder, and just change settings for Auto Possess AI and AI Controller Class. Keeping default AI controller for the test. Placing both blueprints into the level, and on starting Play, the one, that’s getting possessed by the AI Controller immediately begins floating above ground as in the following picture:
I have absolutely no idea, what I could be missing here.
Edit:
I could reproduce this on 4.24 as well.
Edit #2:
Enabling physics for the capsule makes the mesh just jump shortly when starting play, then it falls down to ground. But I actually do not need physics simulation on this and want to keep this disabled.
Edit #3:
Actually, the Character Movement Component seems to be involved here - changing Default Land Movement Mode for this component from Walking to None makes the mesh stay on ground. Changing this in the blueprint after a sleep back to Walking makes the character jump up - so even after placing the character in scene and later switching to a movement mode would cause a visible artifact.
Thanks a lot for any ideas.