You capsule having simulate physics is not necessary. It may actually be falling when doing so especially if you have gravity or other phisics in place.
Unless required, disable Physics, set up your blocking accordingly.
If the capsule is not your root, you may even not notice that the caspule fell somewhere and is not even where your mesh is.
Colision against mesh is also an option, simple or complexe, but a bit more consuming than a simple “bubble”
In a single actor, You probably don’t want multiple Collision enabled componenents. At least not to start with and only enbale additional collision component on per need. Otherwise they may interfere, or not having the right compoenent being hit and therefore not triggering the expected hit.
Id’ suggest to set the Capsule as root, and attach the rest of the stuff to it.
In this projectile, only the “box” has colision. anything else is no colision. just beautification.
The “on hit” can be triggered from both side, but preferably from the moving part.
Also make sure you distinguish component hit, and actor hit : you probably want to focus on the componenent and ecventually call upon some event or interface to spread the hit.
Just my 2 cents.