Normally, how a physics handle works is by setting its grab component to a physics body that, obviously, has Simulate Physics set to true. the problem is, when I fracture those same static meshes, that work with physics handles, using the fracture mode in UE5, the physics handle refuses to work.
This is known limitation of this system the same way the physics constraint component will not work with a geometry collection
This is because the GetBodyInstance() method on a GeometrryCollectionComponent will return a null value
We are working on addressing those limitations, so stay tuned for future releases
I guess your best option in 5.0.3 would be to use fields to manipulate broken pieces of the geometry collection