I originally posted this question on the unity forums, but no one answered my question.
Here it is:
Hello, I have been game developing since May and today I finally figured out how animations work in unity! But as with everything new in developing, I have problems. Let me just be straight with you. I have absolutely no idea what just happened. I have a gif you what happens. Why does the character sink like that? Here is my gif and animation image
I don't have any scripts or parameters for testing purposes. I just let it switch automatically. Here are my options for the transition: