The latest example project should have that fixed, but in short, epic broke a lot of things regarding the constraints and skeletal meshes have been constraint / attachment bugged since 5.0. For snap turn the “mark character teleport” flag needs to be on for now to avoid the hands having issues as it will re-sync them.
Chaos has at least a dozen skeletal mesh related attachment and constraint bugs that I am aware of, many of which I have reported and have been pushed off for 3 engine versions now.
You can’t just take a 4.27 project and upgrade it without porting a bunch of workarounds to work around chaos’s issues that I had to add to the blueprints for those hands (as they aren’t part of the actual plugin the changes are in the BPs, I place such fixes inside of a red comment box).
I have ported what few fixes I could to the base class that I am using for the hands, but at some point most of them are outside of the scope of a plugin and I can’t get into the private functions / deeply nested classes to override / fix the issues without engine source edits.
Just kind of is what it is until Epic takes the time to have someone sit down and correct the bugs cropping up.
For your porting reference, in UE5 so far I have had to:
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Turn off the physical hand collision when attached (or the held objects collision is malformed).
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Stop directly attaching the hand and use a proxy attachment instead to workound another bug with the physics transform and skeletal mesh.
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Delay a tick everywhere that the hands detach / attach to something before adding a constraint / changing simulation state as otherwise the changes are enacted on the wrong body instance.
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(relevant for UE4 to 5 conversions) Entirely re-weight and re-balance the constraints as chaos’s translation scalers from physx to chaos are very far off on the damping side of things.
If you were to use constraints only to hold the hands to the object and drop the attachment it may work better right up until 5.4, unknown in 5.4 since they broke constraints so badly in it.