Get Instances Overlap returns overlap outside of collision bounds

Get Instances Overlap returns overlap outside of the collision bounds.

This effects the Instanced Overlapping Box and Sphere. It is also reproducible with engine assets replacing the Fencing mesh.

User Description:

I have seen a few people having strange results when using this blueprint feature but I haven't seen a solution. My current project makes use of this a lot and with certain meshes the results seem to be different to what I am expecting.

I decided to create a new project to test this out so hopefully someone from Epic can have a look for me, I can upload this project if you need it.

1. Open the attached test project
2. Go to the Toolbar > Simulate
3. Select the Sphere
4. Use the translate widget to move the sphere towards the other (Fencing) object slowly until the Print String reads 1 (overlap)

Results: Before the sphere gets to the other object, the Print String will read 1 (which means the Instanced Overlapping Sphere is registering a overlap with the fence mesh.

Expected: For the Instanced Overlapping Sphere to only register an overlap when it is touching/overlapping with the instances collision.

"Get instances overlapping sphere" Instanced static meshes found issue