Define “Relative Rotation”. It you point it to a blueprint for the preview actor, it’ll just instantiate that blueprint - rotation and all. If you just point it to a static/skeletal mesh, then it builds an actor on the fly so the rotation can be off. There is a rotation option in the Able Editor Settings that you can use to rotate the static mesh to point in the correct location.
There could be a translation issue on the query, it’s happened in the past but I haven’t had any reports in forever until this last week so that’s why I’m a bit confused on this popping up, that code hasn’t changed on my end. An easy way to test is to just setup a sphere query, put it on yourself (so no translation, rotation, etc) and just set the radius up pretty high. If that works, but then you try and translate it out a bit - then it’s a translation bug, otherwise it could be a setup issue with the collision actor data.