I've been trying to setup my glb files to import with the new "Generate Physics" option in Godot 4. In this case, I have the scene set to import as a CharacterBody3D. The MeshInstance underneath, I click the box on for Generate Physics, set the Body Type to Static (I've also tried Dynamic), and the Shape Type to Decompose Convex (I've also tried other shapes). On import, I have a CharacterBody3D, with a MeshInstance3D inside, then a StaticBody3D inside that. The CollisionShape3D is inside the StaticBody3D.
Problem is, the CharacterBody3D doesn't detect the CollisionShape3D nested underneath the StaticBody3D (which is nested underneath the MeshInstance3D). I get the error: This Node has no shape. I can still run the game, but the physics act weird for the CharacterBody3D. When I run into something, it shoves the mesh around, but not the CharacterBody3D, so the mesh no longer aligns for the CharacterBody3D's transforms or position.
I can't find a way to move the collision shape up the tree to nest directly under the CharacterBody3D node (which appears to be what's expected).
Is this a bug? Or is there a step I'm missing somewhere?