UE5.6 Bug: Traces don't hit when starting inside a mesh & using complex as simple collision

I tried it with a sphere trace in the video but I’ve tested it with a line trace as well and had the same result.

I made a 2 minute video showing the problem happening on UE5.6.1 and showing it working as intended on UE5.5.4

Here is a link to download both of the projects if you want: