I was having this issue in 5.2. I would create a PFS, it would work fine, but the volume was interfering with the player’s projectiles, so I disabled collision on the PFS volume (it defaults to “Custom”, I changed it to “NoCollision”). After I changed the collision the foliage wouldn’t spawn anymore and I’d get the same error message.
By changing the collision type to a custom channel I’ve made for volumes I was able to Resimulate the foliage again and I also didn’t have the problems with my projectiles either!
I had the same issue. I fixed it after days of research and tried everything
I had to change the collision of the Landscape. And now it works again.
Change WorldStatic to Block.
Solution for me was to go into each static mesh foliage and just add a zero on the default value on the height. Make sure all your other values are right on the volume.
Also, make sure the Procedural Foliage flag is enabled in the editor preferences.
editor preferences > experimental > check the Procedural Foliage box.