Is it possible to animate/move a bone that has a constraint component attached to a staticmesh while keeping physics collisions?

I’m attempting to animate a specific bone from my character with a constraint attached. I’m trying to find the proper way to do this while keeping the constraints physics realistic.

Here is a professional illustration I did to describe my situation:

Blue is a static mesh with simulated physics. It is constrained to red which is a bone from my character. My character is a chaos vehicle that has simulated physics as well and I am attempting to move red bone up with an animation perhaps.

Here are some things I think I have tried but failed.
I am fairly new to this and likely haven’t done these properly.

  1. Moving the parent of constraint up using transform. (Blue clips through any simulated object and does not push it up as expected.)
  2. Moving the constraint up using transform. (Constraint seems to go up, but doesn’t effect either red or blue for some reason resulting in nothing happening.)
  3. Simple animation to move the bone up. (The animation only works when physics is not simulated.)
  4. Attaching the constraint to a socket and transforming the socket. (weird inconsistent results. Doubt I did this correctly.)

The next thing I’ll try is setting up a control rig and then transforming from BP, but I got no idea if that is the proper use case here.

I feel like I’m running in the dark throwing spaghetti against the wall.
Any suggestions or help would be appreciated.