In my understanding this should not work. The interaction component traces against the quad geometry generated by the widget component’s world space setting. Afaik, this quad is not there while we’re in screen space.
But as I don’t want it to create shadows or be occluded,
Both can be disabled. The only downside is that 3d widgets are nowhere nearly as crisp.
Occlusion:
Shadows:
Widget Components do not cast shadows?