This seems to be a bug in the current version, it worked as it should before but now it's broken like you said. I kinda fixed it by toggling "use controller as waist" on and off for a second and then my body started following the headset, but the waist is slightly offset to the right which still makes interactions awkward if not impossible.I ask this again because my question and the one of someone else was ignored:
how can i change my controlls to turn the avatar ? only my camera is turning with the stick of my quest 2 controllers but not the avatar