I have this same problem, but with the dynamic “security camera” mesh that I migrated from the “Blueprints” free project. The “security camera” is as default in its BP_Security_Camera_Tracking and tucked against a wall. When you play the level the “security camera” moves left and right and targets the player if close to its cone of light. It gets its dynamic shadow if I’m close with my camera (in-game and in editor), but the shadow disappears when you are a couple of steps away from it (which is too short and too noticeable). The light source is a single Spot Light in the middle of a closed room. I don’t get this issue with the shadows on the SM_chair mesh from the “Starter Content” pack, not even after I enable physics on it and I bump and toss the chair far away from the camera.
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I noticed that the “security camera” in its “Blueprints” project reacts more properly to a sudden Point Light and Spot Light in its general vicinity, as the shadow fades into nothingness, a tad more natural looking than seeing it just disappearing in the blink of an eye. It’s still noticeable though as the shadow disappears too close to the player if he looks up from less than 2 feet away from it.
Is this an issue of the Point Light and Spot Light or of the model in itself?
(free bump because I’m curious to see this solved)
For other things. Have a look at this troubleshooting guide link about lights: