What is the current state of destruction in multiplayer?

I doubt that the geometry caches are replicated.

They are probably individually simulated on each client and the pieces end up wherever.

In multiplayer that can likely be an issue, since if a player takes cover behind the debrie they will likely be in full view of some other player where the simulation went different.

Its essentially impossible to get the geometry cache to replicate - not because its impossible per se, but because you need to transmit and sync data of the transform of all of the cache objects.
More objects = more data = less accuracy = more lag.

That doesn’t mean epic hasnt added the option though - they do a lot of more boneheaded things.
You need to pull whatever copy of the engine you want to use and check.

However, just know that using Chaos makes your “game” nearly unplayable in terms of accuracy and performance, even for single player.

You are probably better off building from source with PhysX and making your own replicated geometry chace system for destructibles.

For a small game, to get around the problem just don’t simulate.
Every wall breaks the exact same way using a dedicated alembic file… this way, Everyone sees the exact same thing…