After hours of experimenting I found 3 parameter that really can change the situation, those are:
- Collision Margin Fraction - with value as small as possible like 0.001
- Collision Margin Max - value around 0,05 (or less)
- Collision Max Push Out Velocity - with value about 700
with such values I can get much more stable and accurate results, but still I have some artifacts like objects going through each other or through the floor for a few frames.
So, what I can say for now is that Unreal’s physics sucks really well. And I dont really know how to deal with it. One of our main game mechanics should have be physics interaction/manipulation, and what I can see so far donesn’t really make me happy.
Here is the second video with comparison of default and adjusted physics settings: https://youtu.be/AzhxiwnbQx8