Looks like you can ignore the multiple fragment error.
[Solved]
I was using a static mesh character (AnimToTexture) but I realized I need to wrap it within a Character BP that has a Capsule component and a Movement component.
If you are trying to use a custom character, start with a Character BP and build it up from there. Also watch this video [UE5 Tutorial MassAI Crowd in any project in less then 15 mins. - YouTube].