Capsulle collider does not trigger overlaps events

I have an actor with a capsule collider component that has the following characteristics:

  • Collision Enabled: Query Only
  • Object Type: WorldDynamic
  • Overlap Channels: WorldStatic, WorldDynamic, Pawn
  • Ignore Channels: All other channels
  • Generate Overlap Events: True
  • No Simulation Hit Events

I have an actor with a procedural mesh component that is generated with the following collision settings:

  • Collision Enabled: Query Only
  • Object Type: WorldStatic
  • Overlap Channels: WorldStatic, WorldDynamic, Pawn
  • Block Channels: Visibility
  • Ignore Channels: All other channels
  • Generate Overlap Events: True

When these actors overlap, the overlap events are not triggered. However, if I add a static mesh component to the capsule collider with the same collision settings, the overlap events in the procedural mesh actor are triggered.

Could someone assist me in identifying the missing setting in the capsule collider?
This is the collision setting in the procedural mesh

void AHighlightArea::SetColliderToMesh()
{

	ProceduralMesh->bUseComplexAsSimpleCollision = this->ComplexAsSimpleCollision;
	ProceduralMesh->SetCollisionEnabled(ECollisionEnabled::QueryOnly);
	ProceduralMesh->SetCollisionObjectType(ECollisionChannel::ECC_WorldStatic);
	ProceduralMesh->SetCollisionResponseToAllChannels(ECollisionResponse::ECR_Ignore);
	ProceduralMesh->SetCollisionResponseToChannel(ECollisionChannel::ECC_Visibility, ECollisionResponse::ECR_Block);
	ProceduralMesh->SetCollisionResponseToChannel(ECollisionChannel::ECC_Pawn, ECollisionResponse::ECR_Overlap);
	ProceduralMesh->SetCollisionResponseToChannel(ECollisionChannel::ECC_WorldStatic, ECollisionResponse::ECR_Overlap);
	ProceduralMesh->SetCollisionResponseToChannel(ECollisionChannel::ECC_WorldDynamic, ECollisionResponse::ECR_Overlap);
	ProceduralMesh->SetGenerateOverlapEvents(true);
	this->GetWorld()->GetTimerManager().SetTimer(
		this->NewGameTimerHandle, [this]()
		{
			this->CheckOverlappingEnemies();
		}, this->DelayOverlapTrigger, false);
}

The next, is the function that gets the overlapping actors

void AHighlightArea::CheckOverlappingEnemies()
{
	if (this->ExplorerInstigatorController)
	{
		TArray<AActor*> OverlappingEnemies;
		this->ProceduralMesh->GetOverlappingActors(OverlappingEnemies);
		UE_LOG(LogTemp, Warning, TEXT("Overlapping Enemies: %d"), OverlappingEnemies.Num());
		for (AActor* Enemy : OverlappingEnemies)
		{
			UE_LOG(LogTemp, Warning, TEXT("Overlap with: %s"), *Enemy->GetActorNameOrLabel());
			if (Enemy->ActorHasTag(this->EnemyTag))
			{
				UE_LOG(LogTemp, Warning, TEXT("Pawn with tag %s is overlapping!"), *this->EnemyTag.ToString());
				UGameplayStatics::ApplyDamage(Enemy, this->Damage, this->ExplorerInstigatorController, this, UDamageType::StaticClass());
			}
		}
	}
}

Here is a screenshot of the enemy collision settings

Here is a screenshot of when the error is presented

The capsule is the enemy, and the greenish is the procedural mesh, but no overlap is detected.

I would appreciate if you can assist me?

Thanks