Custom NPC do not avoid each other and go inside each other

I have set up a full custom npc (verse behavior, custom cosmetic with own actor, etc). I have create physical asset for skeletal mesh and ticked “Effects navigation…” where I could in actor + skel. mesh, but it doesn’t make a difference for my issue.

I have also tried to add static mesh as child with “Effects navigation…” , but that also has not effect.

This ends up in unwanted behavior, where npc overlap and go trough each other, etc.

Let me know if I missed something.

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Done > Custom NPC do not avoid each other when navigating and do not collide . I posted here, also with hopes that I am missing something and for advice.