UCharacterMovementComponent::SimulateMovement line 1729 checks: if (!bHandledNetUpdate || !bNetworkSkipProxyPredictionOnNetUpdate || !CharacterMovementCVars::NetEnableSkipProxyPredictionOnNetUpdate)
This option bNetworkSkipProxyPredictionOnNetUpdate is the culprit - or rather, it is disabled by default and enabling it makes it work as intended. When the option isn't enabled the issue occurs.
This was reported and tested in 4.22.1 (CL-6063286). This was reproduced in 4.21.2 (CL-4753647) and Main 4.23 (CL-6449940).
Results: Simulated proxies slide a bit after they stop moving
Expected: Simulated proxies stop where they are after they stop moving
There's no existing public thread on this issue, so head over toAnswerHub just mention UE-74634 in the post.