Hello.
Thank you for reporting the bug.
The source of the problem is because the automatic delta space calculation produce the wrong scale. This is a known issue and fixed, and is coming on the next path 2021.2.5
This happens when the parent transform of the target mesh is being scaled. (in this case I see it’s scaled to 100).
Until 2021.2.5 is available, there are 2 workaround that you can do:
Select this deltaBlend_space transform parented under the _result mesh, and scale it down using the scale tool.
Or, Reset the scale of your character to the original size before running mesh fitting (Optionally, you can scale Mark geos to match the scale of your character if you want to see them side by side). Then run the mesh fitting and postwrap like usual.
Please stay tuned for the next patch update :) Sorry for the inconvenience.