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I'm guessing what's happening is you didn't move the puppet's group and just moved their body parts, so the puppet's physics collider is still down on the ground at the bottom of the wall while the animation plays. Then it got automatically teleported to the top of the wall when Keep Changes was applied at the last keyframe.
What you'll probably need to do is animate the character doing climbing poses but without moving their position away from the circle on the ground near their feet. Then scope out and move their position by moving the whole puppet.