AI Perception can see through walls

Right, but how are you actually setting that player value? It looks like maybe in your AI service?. Because I do not think the AI is actually seeing you, its just moving toward you because that value is set. When AI perceives something it will actually draw a debug sphere on top of what it is perceiving. That green line is just its perception vision angle.

So the issue is either in your AI service or in your AI controller if you are using the On Perception Updated event.