The motion controllers appear to be incorrectly assigned in the VR template resulting in them no longer tracking the motion controllers. The Hand enum that is exposed in the BP_motionController that is used to assign the hands is plugged directly into "Motion source". This appears to feed in incorrect data.
I have provided an example of a workaround using a switch
Result: The static mesh hands do not follow the controllers
Expected: The static mesh hands would follow the motion controllers
There's no existing public thread on this issue, so head over toAnswerHub just mention UE-55493 in the post.