Physics replication is not working correctly and clients receive different results

Physics replication is not working properly. The replicated physics are different than what is on the server. The user who reported this issue pointed out this line as well which seems to not do anything, as it puts the BI to sleep if it's already asleep:

https://github.com/EpicGames/UnrealEngine/blob/4.20/Engine/Source/Runtime/Engine/Private/PhysicsEngine/PhysicsReplication.cpp#L248

Regression?: Yes
This did not occur on 4.19.2

1. Download the attached project
2. PIE with Number of Players set to 2
3. Watch the cubes on the two instances
   Result: After a few seconds, the top cube begins to slide off the others on the client, while it stays in place on the host
   Expected: The results are the same on the host and client