Precise collision detection/response?

Sprite A: Box Collider 2D and Rigidbody 2D.

Sprite B: Box Collider 2D.

Both sprites have a Sprites/Default material with Pixel Snap enabled. The textures being used are set to Truecolor Format and Point Filter Mode. No Mip Maps and 1 Pixels Per Unit (higher PPU seems to make the issue more obvious, but lower value does nothing but scale the problem down).

I put Sprite A above Sprite B, hit play. I see Sprite A fall into Sprite B and hover slightly above it. I think this is horrible, so I look it up. I find I can lower Min Penetration For Penalty to help… but not fix… this issue. It’s barely noticeable now.

After a while, I noticed Sprite A sometimes overlaps Sprite B briefly during collisions. I can’t seem to find a clean fix to either of these issues.

Is Unity’s physics engine just not designed for the level of accuracy I’m wanting? It seems the whole way the physics engine works is by allowing overlap (minPenetrationForPenalty) before pushing objects out of each other. I’ve been coding for many years as a hobbyist, so no professional experience, but this seems… wrong. Are there options that don’t involve overlapping of objects?

Thanks for any and all help.

I simply changed my primary sprite, sprite A, to use continuous collision detection and everything started looking proper. I also changed Interpolate from None to Interpolate, which smoothed out the graphics. Thanks to Kamakazi and Vadim Tatarnikov on 2d - Collision Detection/Response Issues in Unity - Game Development Stack Exchange