UE 5.6 broke the Collaborative Viewer Template pawn's Mouse Look

UE 5.6 broke the Collaborative Viewer Template pawn's Mouse Look.
Creating a 5.6 project based on the Collaborative Viewer Template and Playing-In-Editor, we notice that the Mouse Look functionality is broken, with the mouse snapping back to the center after a small movement of the mouse.
If we open the same 5.6 project based off the CV template on 5.5, the project opens normally. That means there were no updates to the template between both versions of the Engine. Testing Mouse Look on 5.5, it works normally. The change that breaks the functionality is not due to updates the the BPs of the project. Some engine C++ function was updated and broke the template.
I've tested this on 5.5 and it works fine.
The broken behavior can be observed on 5.6 and also on 5.7 (CL44372627).

Create a Collaborative Viewer Template project in 5.6
Play-In-Editor
Try to turn using the mouse
The view will start to turn and quickly snap back to the initial position, rendering Mouse Look in a broken state on 5.6 and up