Yes, some motion files only apply animation data, and don't change the character's position on the XYZ axis. Some other motion files do it both (applying an animation and moving the character as well, if the animation's purpose is movement, like walking, running etc.) Most of the times you will apply motions and see for yourself if they move the character or not.
The motion puppet tool falls under the first category. It only applies animation on the character.
So if you want your character to move in space after using the Motion Puppet Tool, you have to do it manually. Are you familiar with the process of moving objects through the XYZ axis?
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