Motion controllers not generating hit events

Hello, I am having problems with motion controllers not generating hit events.
I am trying to create object interactions as talked about in this training stream

For testing, I made a physics cube that plays a sound when hit. I have some collision boxes attached to the motion controllers. The physics works as I am able to bat around the cube with the controllers, however the sound does not play. Only when hit by the capsule component of the character does the cube generate a hit and play the sound.

I also tried attaching a cube to the player capsule, so its floating in front of you, but this also does not generate hit events, but does have physics working. What am I doing wrong? Why will nothing except the capsule component generate a hit?? Thanks for your help.