Problem solved. Turns out my item had Collision turned to BlockAllDynamic. Which I believe during movement collided with the Player’s mesh pushing it which looked like teleporting/rubber banding.
With these collision settings, everything works fine and for all of you having same issue, my settings for Socket Transform Space are RTS World and for Attach Component are Snap to Target in Location and Rotation but Keep World in Scale Rule.
Have a good day UE4 community!
