It sounds like your issue is that you don’t want the (non simulating) bodies to penetrate as you drag them around the scene.
afaik - there is nothing to automatically prevent a kinematic (non simulating physics) body from interpenetrating another body.
(For simulating bodies, the physics simulation solve penetrations by applying forces to the bodies. But in order to apply restitution forces, they must be simulating physics.)
If you must use kinematic bodies, then Enabling Sweep will at least generate hit events for those collisions, and in those hit events you can manually adjust the position to prevent penetration yourself. Utilize the results from the line trace to determine the offset to apply.
Another alternative is to use a physics body instead, and utilize a physics handle to drag it around the scene:
It really depends on what you are trying to achieve