When UGC avatar bundles in V-pose use animations, the animations correct themselves in a way that raises the avatar’s arms up in a Y-pose. This only happens when the avatar is animated.
Sorry for the delayed reply.
I have a few questions. Any insights / details will are helpful for us to pin-point the issue and will be greatly appreciated.
Is this character set up in DCC or the bones are from Avatar Auto Setup?
Is the issue only in animation preview in Avatar Setup plugin or also happens in experience (e.g. Avatar Setup tool → test in experience).
If possible, could you share this asset? We also understand if you prefer not to share this asset.