Welding of Scene Components does not act as expected

If a scene component is placed in the middle of a hierarchy it appears that the collision of the root will not propagate to all of the children

1. Open a new project
2. Create a new blueprint
3. Add a cube component as the root
4. Set simulate physics for the cube component to true
5. Add a Scene Component
6. Set the Scene component as a child to the cube component
7. Add another cube component
8. Set the cube component as a child of the scene component (do NOT set simulate physics to true)
9. Separate the cubes so that there is space between them and the parent is on top (attached image for reference )
10. Place the actor in the level (make sure the child is on bottom) so that you can see both cubes
11. Play in Editor
12. Notice that the child goes through the floor

Expected: The collision would propagate down to the child so that it hits the floor and the whole actor would move as if it were one piece
Result: The child actor falls through the floor and swings around the parent