Capsule trace by channel appears to clip through static meshes

Capsule trace by channel appears to clip through static meshes. The capsule trace appears to clip through a mesh at certain angles

1. Download the attached project
2. Open the project
3. Play in Editor
4. Notice that the capsule trace is clipping through the mesh

Expected: The Capsule trace would be sitting on top of the mesh
Result: The capsule trace appears to clip through the mesh at certain angles