Dynamic Light placed inside of a Dynamic Static Mesh doesn't pass through the geometry

Dynamic Light placed inside of a Dynamic Static Mesh doesn't pass through the geometry. The static mesh is not double-sided.

User Description:

It appears that in Unreal 4.16 one loses the ability to place movable light sources inside movable shadow-casting objects.

This unfortunately, breaks lighting for many scenarios: In one example case of mine, I have a spotlight inside a (shadow-casting) flashlight mesh. Both are moveable. The flashlight can no longer shine light in my game (worked fine in 4.15).

I could of course disable shadow-casting from the flashlight mesh, but the lack of shadows is very noticeable when placed on a surface like a table or the floor.

1. Open the attached project in 4.15 to see the expected behavior or see screenshot Light01
2. Convert a copy of the project in 4.16 to reproduce this issue

Results: In 4.16+ the light will no longer pass though single-sided geometry

Expected: For the light to pass though