Tutorial: Networked Physics - Pawn Tutorial

The things you collide with in the scene that are correcting badly, are they based on AActor blueprint assets or are they blueprints of AStaticMeshActors or maybe shapes added directly to the scene without a blueprint?
If the two last then you have another duplicate setting for the physics replication mode that also needs to be set to Resimulation, else the replication of them pops over to “Default” which doesn’t work alongside resimulation.
(This is probably also a bug with StaticMeshActor movement replication and Iris currently in 5.7)

You should also be able to see that by looking at the color of the debug draw you print out, if it’s anything else than red then it’s not running resimulation.

And if there is no debug draw at all then it might not replicate which will also cause bad corrections.