I keep forgetting how exactly the collision is handled by external systems as currently I have tons of other stuff to look at. About a month ago I ran into a situation with UE5.2 which I attempt to remember correctly. My collision was not working properly on a seemingly simple asset (pawn with custom simplified movement component) which moved through walls. What (I think) I found was that the collision component has to be the root component of a pawn, and did not work with a complex collision, say, if the pawn used a static mesh with its own collision, it would pass through walls regardless of the collision setup and collision settings. What is supported, is to use a simple collision such as capsule just like unreal’s example character does.
This situation leaves the original question of this topic without answer (and makes my previous comment invalid). In physics situations however, I had been able to use a characters complex collision in old projects back on UE4. It gets a bit complex and certainly tangled in certain engine systems their code.