It seems in the FBodyInstance::InitDynamicProperties_AssumesLocked, we early out when the body instance's collision is QueryOnly, but actually we only recreate its physics state when changing from NoCollision to QueryAndPhysics.
TestProject: [Link Removed]
The character's physics bodies have a max angular velocity set in the PhAT(100 deg/s on its feet). And I have a blueprint set its collision from QueryOnly to QueryAndPhysics and starts to simulate after 2 seconds when PIE, you can see the max angular velocity setup won't work. but if its initial collision is NoCollision or QueryAndPhysics, the angular velocity will be limited as expected.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-193649 in the post.