I started by replaying the two mainline Wolfenstein games to see how their controls felt. When trying to emulate the true first person style from The New Colossus, I encountered several problems with the camera and collision.
One iteration was made rotating the spine bones when the players aimed up and down so the arms would follow the camera view, however, this caused clipping problems as the skeletal mesh and camera was outside of the capsule collider. Making the collider larger would only cause more issues with collision detection when walking, so I decided to instead try without bending the spine. This solved clipping, but the aiming was extremely inconsistent and unusable.
Finally, I decided to switch and try the first-person style from The New Order, where you can only see the player's arms and weapons. This made it much easier as I could parent the camera to the mesh and have a pivot point that rotates for the aiming. For a prototype, it works well and allowed me to proceed with the weapon and other systems. The weapons have different sockets and there is an IK for holding the single weapon, which I found some good videos about online. See the current results comapred to their references below!
View FPS Character Setup and Weapon Input Functions