I'm using 3D Direct Movement using Rigid Body, Interpolate and ignore Gravity. When I try to move the character either along a path or to a point, if the endpoint has a Y value higher than the start point, my character Bounces erratically until it reaches the end point. Could this be a collider issue?
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Hard to say without knowing/seeing more. What if you replace the Rigidbody/Collider with a Character Controller?
What are your AC/Unity version numbers?