"Character" class comes with the built in capsule for physics based movement simulation, you cannot change that in blueprints. You could have a custom pawn with custom collision though, made in cpp. Or you can have an actor not based on char or pawn and do your own collision and simulation.
I haven't checked out the tutorial by Epic, but I tried out paper 2d and i don't remember seeing offset between player capsule and collisions. So I don't think that this is normal. I'm gonna check it out when I get home.
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