Physics Objects still have delay compared to non-physics objects, despite the server having Network Ownership

I’m currently working on a custom character controller, and have run into an issue with delay, as shown in the attached video, there is a delay between anchored parts (the blue and red parts) and physics parts (the character model), I don’t understand why this is the case, when the server has network ownership of the model, and as far as I know, that should make their physics server-calculated. Any help is appreciated.