How to get bullet to apply damage

I would first strongly suggest testing the thing being hit to see if it is of the proper type
Out of the Other Actor do a cast to like your [PlayerCharacter], and then if that cast is successful (with an isValid() the one with the branch I find is cleaner and less buggy)
then do your ApplyDamage()

you are probably hitting the wall or the ground, or some other collider.