Hi ,
I’ve just tested this with 4.4.2 and had no issues with it.
I took a simple box mesh > converted to DM > Placed in Level > setup up destruction properties
DM Parameters
Impact Damage = 1
Default Impact Depth = 0
Then scroll down to the collision setting and change the Collision Preset from Destructible to Custom > Then in the ignore column make sure Pawn is checked. Everything else can stay set on Block unless you change any other settings for your mesh and its interactions.
If you have any questions feel free to ask!
Tim