Simulate Physics Seems to be Broken

I am working with UE5.0.2. In my game, a player controls a robot, which is a pawn. To demo the issue, I have a cube static mesh as the pawn actor that will move around the Third Person arena and when it hits actors (blocks) with Simulate Physics turned on, simulate physics is triggered (struck actor tumbles away). Then, if I add a Box Collision to the pawn actor, make it the Scene Root Component and change the Collision Preset to Pawn, when the pawn actor hits the same actors (blocks) with Simulate Physics turned on, it is blocked and there is no physics response.

However, if I change the Collision Volume for the pawn actor from Box Collision to Capsule Collision, then the game behaves as expected - when the pawn actor hits the block, it triggers a physics response.

Furthermore, if I change the Collision Volume for the pawn actor back to Box Collision, it triggers the physics response as expected.

I have replicated this multiple times now. If anyone can help me understand what may be happening, I would very much appreciate it. Thanks in advance.

ADDENDUM: Since my original post, going through the same steps, I have created a project in which it does the opposite - simulate physics works, but blocking volumes within the arena do not work. Furthermore, I have created a version with two identical actors with collision set the same for both, but one generates physics effects when colliding with objects with simulate physics turned on and the other passes through the same objects.

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