I just tested this in the 4.7 Preview but I couldn’t get your results. I’m testing with the default 3rd Person template character.
If you would like, you can send us your skeletal mesh and character .uassets so we can troubleshoot this for you. Just send me a download link by private message on the Forums.
If not, can you try reproducing this in a default project?
I was able to repro this with the default 3rd person template by disconnecting all animations, then ticking Simulate Physics after creating a new Physics Asset (since there isn’t one by default). In the Blueprint Editor, it seemed fine. When I dragged out an instance into my map, this is what I get:
Thank you for the report. I was able to reproduce this in the 4.7 Preview, but it’s been fixed in our latest internal build. You should see this working correctly in a future update.