Shadow residue when moving actors

Hi all,
I’ve been having a problem which I don’t know if I had before (or just never noticed till now).
My actors have shadowy auras around them, and when I set their location to another value, they move but leave a residue of the said shadow (see images). This residue becomes weaker with every action I make in the editor.
For example, if I move the trash can I will have the residue staying there for as long as I don’t do anything. If I click on any other actor, or move/rotate the viewport just a little bit, it weakens a little bit. If I do this again for 3-4 times it diminishes completely.
This is leaving nasty artifact when I export images in a sequence. Even though this shadow seems a bit like ambient occlusion, it does not react to AO changes in the post-process volume. I tried disabling AO, motion blur, vignette… nothing works.
If anyone knows which setting controls this thing, I would be more than grateful.
Best Regards, Tim.