Our issue was that we are using Root Motion animation in Level Sequences and because the Actors are bumping into the surrounding environment, it made the actual animation in game different from the preview animation in Level Sequencer. To get around this, we set the Movement Mode to Flying, but resizing the CollisionCapsule would not work because it would resize the Actors as well (since CollisionCapsule is the root component). Instead, we left CollisionEnabled = 3 (which means that the collision for the capsule is enabled for Hit events), then we cheated by setting WorldStatic and WorldDynamic layers to Ignore. This is procedurally set before and after playing a cutscene.