Its all working correctly for me (aside from needing to change some brackets in the latest patch to cover when not sending the velocities for client auth).
Are you using the optional angular / linear velocity inputs to the drop node? If you have the inputs reversed it would cause it to appear to drop straight down. But other than that it should be working fine, the plugin already sets simulating automatically and no, clients get velocity applied.
The velocity of attached objects aren’t calculated, but i’m not attaching these objects to the hands and even if I was I am reading their physics body velocity not their component one when I pass in the optional velocities and those update anyway.
The point of the optional inputs is so that clients get the velocity of their release applied to the throw instead of relying on the server to be “close enough”.
Also thanks for the heads up on the scoped call, I hadn’t built a non unity build in a bit so it was skipping over that, I updated 4.19 to fix it and ran a full non unity build to confirm (I generally run those near the end of a version update as I am usually the only one on the previews).