Animation Graphs and world position - how to make it local space?

Question/request from Discord thread (Discord).

If you have an Xform with a character under it controlled by a Animation Graph playing an animation clip (e.g., walk, idle, etc), then if the parent Xform moves, the root bone of the child skeleton compensates in the opposite direction so the character does not move.

Question: Is this on purpose?

I used one of the NVIDIA samples for walking. I created a new Xform, moved the character under it, then moved the Xform while in Play mode. The Xform moved, but you can see the root bone offset move in the opposite amount resulting in the character not moving.

If a character is sitting in a car and the car moves, how to get the character to move with the car?