Collision capsule attached to skeletalmesh with 'collision enabled' collides

Collision capsule attached to skeletalmesh with 'no collision enabled' collides despite of being set to 'no physics collision'

work around: image attached

1. Create a new Actor Blueprint.
2. Add a SkeletalMeshComponent
3. Set Physics->Simulate Physics to true
4. Set Collision->Collision Presets to 'BlockAll'
5. Add a SphereCollisionComponent and attach it to the SkeletalMesh
6. Make sure it is set to 'No Physics Collision' (should be set by default)
7. Make it big enough to see that it collides with terrain
8. Place the newly created actor on level and simulate the game
9. Notice that the new actor collides on the sphere despite it being set to 'No Physics Collision'

Result: skeletal mesh falls over and collapses into a ragdoll; expected: skeletal mesh should stand up straight, in t-pose.