Hey Ben-
Thank you for the sample project. The issue appears to be with the static mesh component simulating physics. I noticed that you specifically set the movement component’s gravity scale to 0.0 and turned physics on for the mesh. If instead you set the scale to 1.0 and turn physics off, you will get the same behavior as the working projectiles without the mesh being blocked. This is also true for the first person template project. The arc of the projectile is controlled by the projectile’s velocity and gravity scale rather than physics.
Cheers