a bit off-topic, but…
Why ever simulate physics? Maybe this option misleading you? I mean making obstacle definitely would block player even without this. triggers and other volumes doesn’t simulate too and still blocks/overlaps stuff. Also how would you replicate physics body? Let say for example my average ping for central Europe is about 150-200 ms and about 250-400 ms to US (i have good 100 Mbit channel), believe me everything above 150 is barely playable, and that is without any physics, now drop the physics on top of this and it will be not playable at all