This component uses the PhysX's builtin character controller, which relies on an implicit kinematic body that is actually being passed with the motion internally. As with any kinematic body, its motion is actually carried out during simulation, and only accumulated until then. However, we've always set the transform immediately, for historic reasons. You can only see the discrepancy between where the visual object is and where physics thinks it is using the physics debugger (observe the blue capsule thing lagging behind the visual).