Simulate Physics breaks parenting.

When a component is simulating, it can’t have any parent, since it doesn’t make sense for it to inherit a transform when it is moving under physics forces.
So when you re-enable physics, it will be detached meaning further changes to the parent actor (or rather its root component) will not be inherited.

You would need to either manually re-attach components in your Grab function, or use a physics handle component to pick up simulating objects instead.