Unexpected Collision Response When Nesting Primitive Components

Steps to Reproduce
In the provided project, open TestMap and hit play. I have provided five cases in the map, from left-to-right:

  • The problematic case
  • The same setup, with auto-welding disabled on the child component
  • The same setup, with the child also set to simulate physics
  • The same setup, with the default scene root using a different object type (this works as expected in the repro, but falls through the world in our actual project)
  • The same setup, with the child primitive removed