How to extend the UPhysicalMaterial class

You need to modify the UCLASS macro above your declaration to include “Blueprintable” and “BlueprintType”:

UCLASS(Blueprintable, BlueprintType, ClassGroup = Physics)
class GRIP_API UAdvancedPhysicalMaterial : public UPhysicalMaterial
{
    ...
};

“Blueprintable” allows Blueprints to be created based on this class. This specifier is inherited.

“BlueprintType” allows Blueprints to use this class as a variable type. This specifier is not inherited.

UPhysicalMaterial has “BlueprintType”, but not “Blueprintable”.