As per our talk and testing, the below code seems to be an adequate workaround to the issue at hand. Replace Mesh->SetSimulatePhysics( true ); with the following:
if( !Mesh->bEnablePhysicsOnDedicatedServer && IsRunningDedicatedServer( ) )
return;
Mesh->BodyInstance.bSimulatePhysics = true;
Mesh->bBlendPhysics = true;
for( int32 i = 0; i < Mesh->Bodies.Num( ); i++ )
{
Mesh->Bodies[ i ]->bSimulatePhysics = true;
Mesh->Bodies[ i ]->UpdateInstanceSimulatePhysics( );
}
Seems that using SetInstanceSimulatePhysics on the Bodies as per 4.5 does not work for replication, where as the 4.3 method of UpdateInstanceSimulatePhysics does.