Skeletal mesh always registers as Dynamic when testing collision

Skeletal meshes do not respect collision changes from World Dynamic, always returns as Dynamic.

Regression (no) issue (does) occur in 4.12.5

1. Download, unzip, open attached project
2. Open CollisionTest
3. Press PIE
4. Move LMB to trace over both box and character
5. Press 1, trace over box (no trace collision)
6. Press 2, trace over skeletal mesh

Results

Trace still hits skeletal mesh

Expected

Trace no longer affects skeletal mesh as it is tracing for World Dynamic and skeletal mesh is set to PhysicsObject.