Why do characters clip through walls in Manor Lords on Valkyrie V360 Lite?

Characters in Manor Lords kept clipping through walls, making combat absurd and unplayable. I tried rolling back the driver, but the system blue-screened, which was a huge pain. I used GamePP System Backup Tool to create a complete backup of the stable driver configuration, including registry items. Rollback testing confirmed that restoring from this backup fixed the physics issues. The collision detection is now normal, and the game is stable.