Gazebo collision not working as expected. Link penetrating and crossing the box object

Help
1

I’m facing very weird problem with gazebo the robot link cross the object even though its collision and inertial properties are proper generated from Solidwork CAD Software . Why link is penetrates the box? min_depth is also zero. Friction is also quite high. Can it be some physics engine property issue?

collision_issue

World File

<?xml version="1.0" ?>

<sdf version="1.6">
  <world name="default">  <physics type="ode">
      <max_step_size>0.001</max_step_size>
      <real_time_factor>1</real_time_factor>
      <real_time_update_rate>1000</real_time_update_rate>
      <ode>
        <solver>
          <!-- <type>world</type> -->
          <!-- <iters>50</iters>
          <sor>1.3</sor> -->
        </solver>
        <constraints>
          <cfm>0</cfm>
          <erp>0.200000</erp>
          <contact_max_correcting_vel>100.0</contact_max_correcting_vel>
          <contact_surface_layer>0.0001</contact_surface_layer>
        </constraints>
      </ode>
    </physics> 
     <include>
      <uri>model://sun</uri>
    </include>
    <include>
      <uri>model://ground_plane</uri>
    </include>
<model name='unit_box'>
    <pose>0.4 0.07 0.5 0 -0 0</pose>
    <link name='link'>
      <inertial>
        <mass>0.00015774</mass>
        <inertia>
          <ixx>0.000000433335</ixx>
          <ixy>0</ixy>
          <ixz>0</ixz>
          <iyy>0.000000433335</iyy>
          <iyz>0</iyz>
          <izz>0.000000433335</izz>
        </inertia>
        <pose>0 0 0 0 -0 0</pose>
      </inertial>
      <collision name='collision'>
        <geometry>
          <box>
            <size>0.054384 0.056414 0.066751</size>
          </box>
        </geometry>
        <max_contacts>100</max_contacts>
        <surface>
          <contact>
            <ode/>
          </contact>
          <bounce/>
          <friction>
            <torsional>
              <ode/>
            </torsional>
            <ode/>
          </friction>
        </surface>
      </collision>
      <visual name='visual'>
        <geometry>
          <box>
            <size>0.054384 0.056414 0.066751</size>
          </box>
        </geometry>
        <material>
          <script>
            <name>Gazebo/White</name>
            <uri>file://media/materials/scripts/gazebo.material</uri>
          </script>
        </material>
      </visual>
      <self_collide>0</self_collide>
      <enable_wind>0</enable_wind>
      <kinematic>0</kinematic>
    </link>
</model>

  </world>
</sdf>

URDF Link

<link name="palm_Link">
    <inertial>
      <origin
        xyz="0.11195757840872 0.0218208391835557 -0.0102781634021541"
        rpy="0 0 0" />
      <mass
        value="0.0574455788604759" />
      <inertia
        ixx="2.76099031307389E-05"
        ixy="-8.29004144373025E-05"
        ixz="-1.91812265176209E-06"
        iyy="0.000324487528258486"
        iyz="2.5599393986152E-07"
        izz="0.00034583642559353" />
    </inertial>
    <visual>
      <origin
        xyz="0 0 0"
        rpy="0 0 0" />
      <geometry>
        <mesh
          filename="package://robot_description/meshes/palm_Link.STL" />
      </geometry>
      <material
        name="">
        <color
          rgba="0.698039215686274 0.698039215686274 0.698039215686274 1" />
      </material>
    </visual>
    <collision>
      <origin
        xyz="0 0 0"
        rpy="0 0 0" />
      <geometry>
        <mesh
          filename="package://robot_description/meshes/palm_Link.STL" />
      </geometry>
    </collision>
</link>

<gazebo reference="palm_Link">
    <mu1>10.0</mu1>
    <mu2>10.0</mu2>
    <kp>1e+9</kp>
    <kd>1e+9</kd>
    <selfCollide>true</selfCollide>
    <material>Gazebo/Black</material>
</gazebo>

I"m using gazebo 11 classic and ros2 humble