AnimationPlayer
s are not able to animate movement, i.e. jumping and walking. AnimatonPlayer
s actually do use local coordinates to animate, but since you are animating the KinematicBody3D
, its position will always be set to specific coordinates that cannot be animated.
TLDR: Don't use AnimationPlayers
for actual movement around the game world; they don't work. Just code the movement in a script instead.