Character Mesh transform replication break on clients

In 4.16, character mesh on clients seem to be in the different location than the server. So far this happens when the player start is above the ground.

This does not happen when network Smoothing is Enabled inside movement component.
This does not happen in 4.15.

1. Open the attached project in 4.16(Third person project with player start moved up a bit)
2. Set player number above 2, and Play in new window
3. Check a client window and see the server character is floating

i have this problem UE4CC-Windows-58DC12AF4B97F057BD108FBFF569B2E9_0000

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