While grabbing a Physbone, Physbone colliders are ignoring its capsule segment as if the setting "Bones As Sphere" was enabled on the collider.

See attached video:

On my left hand I added two colliders for the Physbone on my right hand.

The upper collider has the "Bones As Sphere" option unchecked.

The lower collider has the "Bones As Sphere" option checked.

While not grabbing the Physbone it behaves as expected and is colliding with it's middle segment.

When I grab the Physbone with my left hand it is only colliding on it's end point, which I would expect only if I had the "Bones As Sphere" option checked on the upper Physbone.