Hi ,
Thank you for the additional code. It looks like the issue is happening with this line:
PickupMesh->SetSimulatePhysics(true);
With physics set to simulate on the static mesh component, it essentially detaches that component from its parent component. If you simulate the project, you can see that the root scene component is rotating as expected, but the static mesh is not because it has been separated from the root component. As far as the Blueprint is concerned they are still connected, but in terms of movement they are each doing their own thing.
If you need to have the entire actor, and all of its components, rotate as a single entity, then you won’t be able to turn on Simulate Physics. If you need the static mesh to simulate physics, then you will need to make sure to rotate that component in sync with the actor itself.