If the hidden opaque proxy is already in the level and it still leaks, the shadow method is ignoring that proxy. In 5.8 Virtual Shadow Maps and MegaLights often do not cast from an actor with Hidden in Game, even when Cast Hidden Shadow is on. The proxy is present and still never enters the shadow pass.
Test that directly. On the rect light, turn MegaLights off, or temporarily switch the project shadow method away from Virtual Shadow Maps. If the same proxy suddenly blocks the light, that was the leak. Turn the feature back on and keep the proxy out of the camera without hiding the actor.
The combination that actually gets into the VSM pass: Render In Main Pass off, Render In Depth Pass off, Cast Shadow on, and Hidden in Game left off. Main pass off keeps it out of the picture. Depth pass off is what stops it occluding the room. Hidden in Game is the flag that drops it from VSM. That is different from both-off plus hidden, which never casts, and from depth-pass on, which is what hid the room.
If it still leaks with MegaLights off, it is Lumen screen traces through a thin distance field. That seam gets worse as another mesh approaches the wall, which is the case you described. The proxy has to be an extruded box rather than a plane, with Generate Mesh Distance Field on and Static mobility, or software Lumen never sees it. As a test, set r.Lumen.ScreenProbeGather.ScreenTraces 0. If the seam disappears, raise the distance field resolution on that proxy and keep it slightly thicker than the visible wall, on the light side.
One view splits the two causes. In buffer visualization, compare Shadow Mask with the Lumen scene view. A hole in Shadow Mask means the direct light is still not blocked and the proxy is not in the shadow pass. A solid Shadow Mask with a seam only in the lit view means stop moving the proxy and fix the distance field.
Also worth doing if you can edit the mesh: make the frame and the sill opaque, and keep the translucent material only on the glass pane, inset so its edges sit inside that frame. A translucent sheet the size of the whole wall cannot cast a solid shadow in 5.8 in either blend mode.