What would you want to have happen when those two swords collide? There are many possible outcomes that could happen so the engine actually won’t do any of them in case it’s the wrong one. For example would the swords displace each other rotating about the hand? Would the swords displace their position? Or would they drop out of the hand? Also which sword would be displaced? If you want the sword that is pushing on the other one to displace how do you tell which one that is? Collision is a two way thing you’ll have to make some assumptions to get the intent of the user.
It’s a hard problem that has many valid solutions, Job Simulator drops the object on collision but that doesn’t work well in sword game.
You can’t physically stop the players hand and in my testing displacing the sword can be a little dissatisfying
But it’s up to you and what fits within the game, do some testing and see what works best for the experience you want to make