I’ve tested it with Component Hits and now with Actor Hits, too (like you did) - I’m getting hits from simple rotation:

Technically it’s just a super fancy physics controller, how the underlying physics works should not be affected. But I’ve only been using it for a couple of months or so, and have yet to look under the hood.
Recently, I added a Physics Control Component so that they physically respond to my punches, which is cool!
Which component are you effecting with the physics control? How does it work in this instance?
Can’t see any roadmap updated for this - hopefully it’s being worked on. It’s a neat, versatile system.