Wrong Hips bone relations settings! Hips bone must be disconnected from its parent bone and local location turned on to allow for the translation of the character.
The Hips bone can have a parent bone but the Connected option must be disabled to allow the Hips bone to translate the character.
To ensure accurate translation Local Location option needs to be enabled on the Hips bone.
Select the armature, enter the Edit Mode, and select the Hips bone.
In the Properties editor, under Bone tab, make sure that Connected is dissabled and Local Location enabled.
An automatic fix is available. Simply click on the "Character Cleanup" button that will appear.