Your game is multiplayer game and runned with more client, in this case physics and physics simulated movement will be not replicated because engine can replicate simulated meshes if static mesh component are set as root of the actor!!!
Im not sure, but physics simulated actors accepting mostly forces and direct setting location maybe ignored (im not sure about this)
But no worrie!!
Any case you have solution.
You need work with physics constraint actor/component!!
This is a simple actor ehich can tie and connect together two other actor/mesh and allowing swing/twist movement.
If base actor is not simulating physics, tied other actor will not fall to the ground, just swinging.
Constraint component to char, if interact happen attach interacted mesh to your constraint component, and mesh will follow your character
And dont forget to set mesh as root in that interactable actor, just for sure.
Some further info:
Or and i totally forgot about this:
Ue have built in Physical Handle solution for this