This is a regression. Tested in //UE4/Release-4.27 CL18319896
Add World Rotation applied to a Static Mesh simulating physics behaves erratically.
The Cube falls to the floor and spins in place.
The Cube falls to the floor and spins while sometimes stuttering and shifting around.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-157898 in the post.