When an actor component is selected and is moving independent of it's root the transform gizmo doesn't follow the actor component.
If you select the actor component and translate it the transform gizmo will move to the location of it when you release left click.
Found in 4.23 CL#9631420
Reproduced in 4.24 Cl#10570792, 4.25 Main CL#10611905
1. Open attached project.
2. Simulate the level.
3. Select the TestActor, then select the static mesh component.
Result: The transform gizmo doesn't follow the actor component.
Expected: The transform gizmo follows the actor component.
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There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-85563 in the post.