Steps to reproduce :

- import the project attached
- open the scene
- press play and notice that the character is moving towards the target rather than appearing at the target position instantly
- after the interpolation is finished notice that the Left Hand bone is not in the correct position in relation to the target

Explanation :
This is due to the fact that the source animation is having animation on bones that are in-between human bones. This causes retargeting to be imprecise, and will potentially have problems with MatchTargeting

There are 2 solutions to fix this:

• remove animation on inbetween bones ( Spine3 is guilty here!)

• have an ik pass - OnAnimatorIK - to fix the hand at the proper position.