If you are basing off of the template then you need to make some changes, otherwise it will assume that the HMD is default for both and spawn two HMD pawns. You’ll need to go into the player controller function that chooses between FPS pawn and VR pawn and set it to always return FPS pawn when it is not player 0.
I haven’t done any local multiplayer setup work in the template (at least yet).