OnOwnershipTransfer fires only on the client which had previously owned the object, but now no longer owns it. No other use will get this event. Since "transfer" doesn't specify a direction, it may be confusing to users. Please rename OnOwnershipTransfer to OnOwnershipLost for clarity.
There is no documentation for OnOwnershipTransfer to know what the intended behavior is. https://docs.vrchat.com only mentions this trigger in the update notes when it was introduced and nowhere else.
Related Canny: