Why can I control my character when its placed in world and auto possessed, but not when its spawned?

Anyone might know why this might happen?

it is possible when spawned depending on how you do it a player controller is not possessing the pawn, and it has all the control logic(unless you directly set up control bindings on pawn). I would advice you to check where you are spawning pawn to ensure you add player controller, if it is added then more info on how you spawn the pawn and the player controller (if not the default) will be needed to solve your issue

Set it to “placed in world or spawned”