UPaperGroupedSpriteComponent does not properly update its physics data at runtime, due to relying on the inherited UPrimitiveComponent functions that do not handle its multiple FBodyInstances.
Open the 2D Side Scroller Template Project.
Merge some of the existing sprites into a UPaperGroupedSpriteComponent.
On BeginPlay, set its collision response for pawn to ignore.
Try colliding using the character with the UPaperGroupedSpriteComponent.
Expected: The character passes through the UPaperGroupedSpriteComponent.
Result: The character still collides with UPaperGroupedSpriteComponent, despite the editor showing the collision profile has changed.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-77068 in the post.