Main issue here is the default Third Person template character uses the visibility channel for Foot IK.
It’s all handled in the CR_Mannequin_BasicFootIK
class.
It’s applied in the Animation class → Animgraph.
In the Foot Solve graph their are two Function calls to run a trace. One per foot.
By default the Sphere trace uses the Visibility channel.
I created a custom Trace channel IKinematic
in Project Settings/Collision, specifically to handle foot IK.
Update the Foot Trace function to use the new channel.
Anything in your project you do not want the character to place its foot on you simply “Ignore” that channel.
Note, you do not need to disable Can Character Step Up On
. This pertains to the Capsule components ability to “step up on” it.