Attempting to rotate a physics actor in blueprints through a custom component does not correctly respond to rotation input

SetRotation in a custom component based on another actor's linear velocity incorrectly updates the velocity of the parent blueprint containing the custom component. This causes sporadic, jittery movement. The same code used in a blueprint event graph will not cause this same movement to occur.

Note

This seems similar to [Link Removed], which was closed as By Design, however it may not be directly related.

1. Download, unzip, open attached project
2. Press PIE
3. LMB to fire bullets at Green Cube (reacts as expected)
4. LMB to fire bullets at Red Cube

Results
Red cube does not correctly alter direction or velocity based on the rotation code expressed within RotationComponent.

Expected
Red cube's behavior reacts in the same manner as the green cube, changing rotation and velocity based on impact.

[4.7.6]SetRotation on physics enabled component from Actor/Scene component bugs the physics behaviour