UWidgetComponent currently defaults to the UI collision profile, which means world space widget components (health bars, nameplates, etc.) participate in physical collision by default. This causes unexpected blocking behavior that is very difficult to debug.
Widget components are purely visual elements and should almost never participate in physical collision. Developers who need collision on world space widgets can opt in explicitly.
I’ve submitted a PR with a one line fix.
Note: SetGenerateOverlapEvents(false) is also commented out in the UWidgetComponent constructor, which could indicate that there was prior awareness of the unintended collision behavior that was never resolved.