pic above shows what happens to player character, it gets attached to car.
i even tried deleting the character after possession still issue persist.
this issue happened to me also when i created a new project.
if you want to recreate the issue:
1- create 3rd person template desktop high.
2- add vehicle template.
3- make new open world empty level.
4- make landscape like below pic.
7- add playerstart and sports car BP in scene the corner of the landscape.
8- start play, move a little, then press E to possess the car, then head to the middle of landscape, then the game should freeze like what im facing.