Hi.
I am using 4.7.2 and just ran into this problem. I didn’t change any settings anywhere but I had been editing my landscape when it started happening. I couldn’t figure it out so I came here and found this post… after I changed component size from 256 x 256 to 127 x 127, collision started working again.
I just thought I’d let you know there is still some sort of issue.
Best regards.