How do I make grid-based holes in a grid-based wall in a grid-based game?

First it HAS to be possible, xcom 2 did it in unreal 3.something, and I want it exactly that way.
What I want is the following: I have a thin wall separating multiple grid tiles (/cubes, as it’s 3d) from each other, one of my characters takes a shot, it hits the wall at any location and as a result the tile whose center is closest to the impact (line trace) gets destroyed. As a result, the rest of the wall is still standing, but shots, units and line-of-sights and so on can pass through the hole.

Simplest way I’ve thought of would be to just make the wall out of separate tile sized sections, then I could command them to destroy themselves (and more importantly their collisions) BUT, I’m not sure how to make them look like a proper wall instead of just some tiles and also as a beginner I’m not sure how that would work performance wise.

Other than that maybe taking finished meshes and cutting them into pieces with chaos, but then how well would that work performance wise if there are a lot of them and does chaos change the collisions of meshes when pieces go missing?

So what can I do here?

Maybe I am misunderstanding you, but do you mean something like this: https://youtu.be/8KhXa1VJiMM?si=6JDsEWUH4zVvAUHp

I mean I was hoping for some way to change the mesh, as in the collision box of the mesh changes, because there is no more mesh there, so that there is an actual missing corner or a hole in a wall. Like i want parts of the whole mesh gone, not differently painted (or thats at least thats what i hope they did)

Here is an example of the game, where the player throws a destructive grenade and the house he blew up is literally missing a chunk. I want that, (and also with gunshots, which amounts to the same thing). If you look closely, the edges and corners of the missing piece in the building are square-ish, because the explosion works based on the grid.

Awesome and thank you for the video!

Nothing stops you from replacing meshes and thus collision, alternatively just disabling the collision altogether. Replacing all of the meshes can be hidden behind VFX and other trickery.

I would however look into the chaos system, break up meshes in a grid-like pattern and use the simulation available to achieve something unique.

I don’t really have any other method or idea on how you can achieve this.