Blueprint explosion collision. Weird stuff happening only in new level.

So I just finished my first level. It’s basically a target shooting game. Everything works as intended.
The bullet (projectile) on collision, it spawns a “Blueprint_Effect_Explosion” from the starter pack. Everything works beautifully.
Everything in the 1st level is modeled in UE with generic boxes.
For the 2nd level, I am using a 3d model of a warehouse that I modeled in 3ds max.
After importing it with datasmith and texturing it in UE, I have added a simple box collision to the floor slab, to start testing things out.
Every time the bullet hits the floor, it seems to spawn the bp_effect_explosion under the floor.
I replaced the modeled floor slab, with a UE generic box. Still, the explosion seems to be spawned under the floor.
I placed one of my target actors in the scene, which also spawns the same bp effect.
When the bullet hits this target again, it seems to spawn the bp explosion under the object and under the floor or it is not visible and only the reflection in the floor shows up.
The only thing that I have added for the 2nd level is a PPV covering the whole building for tweaking the lighting.
Any ideas what could be wrong??? I’m losing my mind here…

See screenshots below: (Explosion bp is spawned at correct location - when bullet hits the floor)

Explosion bp seems to spawn under or is not visible and only the reflection shows - when bullet hits the floor.