Direct Puppet usage on an avatar linked to a moving prop causes the avatar to shift postion radically.
Reproduce:
Animate a prop so that it moves from one place to another. Link an avatar to the prop at the beginning of the timeline. Apply animation to the avatar using the Direct Puppet tool. After applying, the avatar suddenly "flies away" radically shifting position.
A similar problem apparently has been fixed with the Motion Puppet tool, but the issue still remains with the Direct puppet tool.