This is the way all movement components work.
In characters, CMC moves the capsule component which is what interacts with the world. No other component can actually block. They are ignored. The skeletal mesh and all other child components simply tag along.
The collision that will block, generate hits, must be the root component. Components that generate specialized overlaps should be children of the root.
Proper projectile is as shown (Collision, Visual, PMC)
The image “Bullet-Visual” is a mesh, but collision is disabled on it.
For all other Actors, those not using movement components, the hierarchy doesn’t really matter.
Semantics wise you’d have either a Scene, or the primary mesh as Root. Really depends on what you’re doing.
My pick up items use a Scene as root, then mesh (no collision), then collision component for interaction as a child of the mesh.
This is the same actor I used in the demo vid a few posts up.