Physics bug with Character Movement (also present in epic's templates for reference)

I have been battling this bug for days. Catching the edge of a dynamic movable simulated box with Character Movement component capsule results in sliding slowly down the side instead of smoothly falling off like in static or stationary modes.

So there’s a bug - are there any workarounds?

I reposted here due to the wrong section for the original bug report. I hope this gets fixed, or there’s workarounds. The problem can much more easily be seen if the capsule is made slightly fatter.

More importantly, why is it happening? I tried materials with no friction and no bounce, but that wasn’t it. I tried varying masses. That wasn’t it either.

The idea that I have to detect this myself and eject the player with a made-up force just to fix this bug is not a nice one. I don’t want to inject needless impulses that can frustrate a player when all we want is the smooth drop off the side that’s present for static or non simulated bodies.