Empty Character repositioned on begin play

When placing a character with an AI Controller in editor, it repositions to the floor of the level when simulating or in PIE.

1. Open the attached project
2. Notice how the Character is slightly floating above the floor
3. Press Simulate and the character is repositioned to the floor
4. Exit Simulate and remove the AIController from the ThirdPersonCharacterNPC
5. Simulate Again and the character is slightly floating above the floor

Result: AI Controller is repostioning the character to the floor

Expected: With the AI Controller on the character would still default to its set position in editor.