Hi BoredEngineer,
Thank you for the report and the test project. I was easily able to reproduce the issue. I’ve created JIRA UE-11939 in our tracking software and our developers will be investigating it further. We will post back here with updates as we have them.
This may not be a workaround that you can use but it may give you some ideas. During testing I did noticed that if the static mesh components aren’t welded, the radial damage is received correctly with physics on or off.
Cheers,
TJ