While reading through different answers on Answerhub I found that StaticMeshActor - with proper settings is former KActor.
This made me extend my custom class from StaticMeshActor and once I applied all the proper settings for Replication it fixed all problems I had with this and just generic settings
bReplicates = true,
bReplicatesMovement = true
StaticMeshComponent->SetMobility(EComponentMobility::Movable);
StaticMeshComponent->SetSimulatePhysics(true);
I could not do this with just Actor on its own, which makes me think there is something extra in there to make it replicate far more accurately. Thank you Rama for the answer you provided, it will come handy at a later point for me without a doubt when I will have to work with replication/movement of physics based SkeletalMeshes 