hmmm i just made my own version of this that worked so there must be another setting in collision that you changed. i just noticed that in you collision theres a setting that says customized collision that doesnt exist in my version. not sure what that does but im guessing it means that the settings have been altered. make sure that your collision is set to block all in every category, set collision enabled to query and static, and make sure your object type is world static. does your projectile collide with anything in your scene? static or dynamic?
heres the collision settings i have and it works.
