I tested it out:
Works pretty darn well. All I did was add a cube to the capsule and set its collisions to block all but World Static, then I set the capsule to ignore all but world static and world dynamic. This way the cube’s collision will be used for bumping into physics objects etc. and the Capsule will be used for the world. You can tweak the radius on the capsule so it’s either tight against the edges of the cube and the corners will clip through walls or other cube characters, or expand it a bit more and you won’t be able to be flush with walls/characters, but there’s no clipping.
This is why I was saying that you don’t need more than a capsule in most cases.