Partial Fix Implemented, branched off to another bug report (UE-34289)
Sequence Recorder doesn't record First Person Template character correctly. I wasn't able to track down exactly what it is about the First Person Character Blueprint that causes this though.
1. Create a First Person Template project
2. Open Window>Sequence Recorder
3. Select Add
4. PIE, then Shift+F1
5. In the new actor in the Sequence Recorder Window, Assign the First Person Character
6. Select Record
7. Run around and shoot for a bit
8. Stop the recording and exit PIE
9. Open the new sequence that was created and play it
Result: The only thing that happens is that the projectiles work as expected
Expected: Character mesh and capsule move around the map
Head over to the existingAnswerHub thread and let us know what's up.