Are you testing IN vr? or out of it? The Simplecharacter offsets the controllers by the HMD’s location as the HMD directly drives the characters movements. The controllers shouldn’t be literally at your feet X/Y though unless they are not tracking or you are not in VR and left them at 0,0,0. They SHOULD be at your feet level in Z as that is where they are when on the floor.
The VRCharacter on the other hand leaves them relative to the actor itself, not the HMD. Either way you shouldn’t ever see them at 0,0,0 unless tracking isn’t working.
Also if you are expecting them to be waist height on the collision capsule, they won’t be, since roomscales “base” is your feet I have the controllers and HMD relative to the “feet” of the character, not the waist. I understand that the standard Pawn setup goes off of the waist / center point of the pawn capsule as that is considered 0,0,0 for it, but that makes less sense when directly driving a character.
Edit Also might want to make sure that you are setting the tracking frame to floor, not eye level.