Hi Construc_,
Distance Fields do not support Skeletal Meshes. This is mentioned in the limitations section of both Distance Field Shadows and Distance Field Ambient Occlusion documentation.
If you’re only using Distance Field Shadowing and need shadows for your Skeletal Meshes you can use the option for “Cast Inset Shadow” to have shadowing for your skeletal meshes, but this will now use Distance Fields.
-Tim