It looks like Body is not nested inside Chad (its at top level, not a sibliing of Head). I would try that as a first step - move it inside Chad, as a sibling to Head.
Also beware of "unused" at the top. It can cause problems. Hidden artwork is still part of a puppet and affects warping etc. CH assumes you might want to add a trigger to make it visible for example.
Alright so i removed unused and moved body below head in chad. What's the proper way of of pinning the body?
Inside the body layer, create a handle at the base and give it the "fixed" tag. Often, I will use the Stick Tool to create one long handle that runs the length of the base of the puppet.
Can i prevent it from stretching?
There's a way to fix it, but I don't remember at the moment. Try moving the fixed handle to a different layer.
Just had to adjust the head tilt strength. Thanks for the help guys