I have an arm on my character which works freely, but my other arm appears stuck to the body by a finger. I have tried changing where the different arm folders are located as well as moving the mouse tracking points in every layer starting from the top layers and going to the lowest layers. No matter what I tried, the arm stayed. Included are three pictures for reference. stuck.
Most likely there are one or more "islands" of unattached pixels that are causing the mesh to become a rectangle. You can check the Show Mesh checkbox at the bottom of the puppet panel and select different subpuppets to see where this is happening. In the Properties panel, changing the Mesh Shape for the relevant subpuppet from Auto to Contour should fix it. Though the "islands" will then disappear -- just reconnect them by a semi-transparent line to stop that from happening.
Thanks for your advice! I updated to Character Animator Preview 2 to try your solution. After trying your solution I discovered that I had my character's legs separate from the rest of the character. However, I left the fixed points for the legs in the same folder as the rest of the character, which I think was making the fixed point stick to whichever of the arms was closest. Upon moving the fixed point into the leg's folder, my character began moving properly and caused me no more trouble.