This has happened to me in the past when a skybox, or large terrain geometry, has a collision mesh.
If you are inside the mesh, the line trace for teleportation immediately returns because it is colliding with the mesh you are inside of. This causes the collision point to be right where your hand is, and that’s where Unreal wants to teleport you to.
Try turning off collision on all your meshes (or at least the large ones), except for the floor. The arc should intersect the floor and that will determine where the teleport happens. If that doesn’t fix the problem, then it’s probably something else, but hopefully my answer will help someone else who has this problem.