Dropped object falls through object below when it is close

I am trying to find a way to fix (or work around) an issue with physics simulation and gravity making objects fall through other objects. I can exemplify what I mean by using the pickup cubes in the VR template. The setup is I grab a pickup cube and hold it above another pickup cube that is resting on the table. If I let go of the cube with half a cube’s width as distance between the cubes I can repeatedly drop the cube and it will stop on top of the lower cube. However, if I drop the cube with something like a quarter of a cube’s width in between the cubes it will often pass through the lower cube.

When I (carefully) drop the cube it’s velocity should be close to zero and a shorter distance between the cubes should mean lower relative velocity upon hit making it less likely to penetrate. The velocity shouldn’t be that high anyways with only gravity acting on the dropped object, right? Stat fps says 8.33 ms so I guess physics should have time to do some steps before the cubes overlap.

I have tried to add a force directed upward (0, 0, 35000) at the end of the drop event graph in BP_PickupCube and that seems to help a bit but it seems like a hack. The force would also need to be adjusted for the weight of the objects being dropped I guess.

Any ideas for a better solution? Any ideas on why close objects fail to collide?

I found the following issue that may be related: