Ok i figured it out myself. I ended up with a simpler component hierarchy.
Static Mesh (as root)
- InteractionBox (CollisionBox) - Auto Weld (uncheck) which ensures the CollisionBox does not inherit the collisionsettings from my Static Mesh.
When i pickup my item i disable Physics and collision and right after i make sure to re-attach my Static Mesh to the RootComponent,
When i drop it again, i detach actor (item), enable Physics and collision and finally i Attach my InteractionBox to Actor again with “Weld Simulated Bodies” off.
If someone can come up with a more elegant solution to this, im keeping this question open for a bit more. But will resolve it if i don’t hear from anyone.