1. In Host logic move "Set Platform Default Controls Disabled" To the "On Peer Connected" Event
The reason the Host is currently moving the peer is because you are only disabling the platform default controls for the host character. This means the peer's default controls are still enabled, and thus the Host is controlling him on accident when you press keys. To fix this just move the disable action to the peer connected event, so that every single peer gets his default controls disabled
2. In Host logic add a "For Each Cassete_chan" condition underneath the condition where you pick all the peer cassete-chans
multi_id =/= Multiplayer.MyID
For Each Cassete_chan
then put all your logic after that
3. I can't tell if you are leaving "Peer Controls" group disabled. If you are, make sure you enable this group for the peer. Right now it looks like "Peer" is being enabled but "Peer Controls" is not. This would be why the peer can't move himself