AAtor derived classes do not experience collisions

I have two classes that serve as base classes for various enemy and projectiles in my 2D game.The Problem is that they don’t collide with each other at all and I get the warning that “Body is set to simulate physics but Collision enabled is incompatible”. In both cases the root component is a UPaperSpriteComponent. My code is as follows and is essentially the same for both classes. I can verify in the editor that when the game is running, that the properties are set to the proper values.

AMob::AMob()
{
 	// Set this pawn to call Tick() every frame.  You can turn this off to improve performance if you don't need it.
	PrimaryActorTick.bCanEverTick = true;
	
	this->sprite = CreateDefaultSubobject<UPaperSpriteComponent>(TEXT("Sprite"));
	this->sprite->AttachTo(this->RootComponent);
	this->RootComponent = this->sprite;

	this->OnActorBeginOverlap.AddDynamic(this, &AMob::collisionHandler);
	this->OnActorEndOverlap.AddDynamic(this, &AMob::collisionDummy);
}

// Called when the game starts or when spawned
void AMob::BeginPlay()
{
	Super::BeginPlay();
	this->alive = true;

	this->sprite->SetSimulatePhysics(true);
	this->sprite->SetEnableGravity(false);
	this->sprite->SetCollisionEnabled(ECollisionEnabled::PhysicsOnly);
	this->sprite->SetCollisionResponseToAllChannels(ECollisionResponse::ECR_Overlap);
}

Did you define the geometry?

I have defined the collision geometry and when I use the show collision command, I can clearly see the geometry overlapping.

AActor::BeginPlay() may be too late to set up physics. Have you tried the constructor or maybe PreInitializeComponents()?

Marc