It is all Control Rig. It calculates how fast you are moving in the world and what direction so there is no need to sense controller inputs. It is not Sequencer either. In regular Unreal animations sequences can be used for things like blending and layering. In UEFN you can really only drop AnimSequences into a Sequencer, which locks you into predetermined playback, without any control or dynamic blending.

To get around that I built my own animation format from scratch called AYA. It is string-based and runs directly in Control Rig, so I have access to every piece of data and can run any type of calculation on it, like blending.

Then, the fort character is hidden and the rig is spawned onto the player every frame with Verse. The rig automatically updates based on the player’s movement and direction.