Short answer: This is completely fine. Since you disabled collision for the visual component anyway, its object type can be anything, really.
Longer answer: A component’s object type determines if other components can collide with it and if so, whether they should produce blocking hits or overlaps. It’s part of the “collision matrix” that you see in the collision settings.
In the image above, if I didn’t want this actor to collide with any pawns, I’d check the “Ignore” box under “Object Responses”. How does the engine know what is a pawn and what isn’t? By looking at a component’s object type. That’s what it does, but it doesn’t have any effect on components where collision is disabled anyway.