Are you sure it’s not bouncing off something else? In that photo you set the capsule to no collision at all, so it definitely shouldn’t be bouncing. Your channel setup looks correct. If you put a blueprint breakpoint on your bounce event you can maybe see exactly what its bouncing off,
Its bouncing of everything else. But i didn’t want it to bounce it off overlapping component.
Solution was to create another collision channel for overlapping component which is set to overlap by all components including the projectile collision. Then it works.