Child collision components ignore collision settings. Only Root comp collision applies

So i have 2 characters
the player has the following settings:

and the Npc:

The problem is:

i can pass through the npc.
Can anyone tell me what should i do if i want to create separate boxes for separate collision controls? E.g to have the default collider only handle staying above ground and other boxes handling other kinds of collisions? Cause it seems that the boxes are ignored. They may report overlaping events but no collision blocks…