The existing separation logic does not correctly detect/resolve the following scenario:

1. Object A's starting position (red dotted box) does not overlap with Object B (black box) on either the X or Y axis
2. Object A moves to now be overlapping on BOTH axes of Object B (shown by red solid box)
   

This is caused because the "swept hull's" look at each axis individually before updating Object A's X and Y components.

Current implementation

1. Shows Object A's last (dotted red) and current (solid red) positions
2. Shows Object A's intermediate position in Yellow
3. Blue box shows swept hull along X-axis based on Object A's last coordinates
4. No collision found, so Object A's intermediate x-position is updated
5. Blue box shows swept hull along Y-axis based on Object A's last coordinates
6. No collision found, so Object A's intermediate y-position is updated

New implementation

1. Shows Object A's last (dotted red) and current (solid red) positions
2. Shows Object A's intermediate position in Yellow
3. Blue box shows swept hull along X-axis based on Object A's last coordinates
4. No collision found, so Object A's intermediate x-position is updated

• Not pictured: After this step, we temporarily update Object A's last x-position so that new swept hull captures the correct space

5. Blue box shows swept hull along Y-axis based on Object A's newly updated last coordinates
6. No collision found, so Object A's intermediate y-position is updated

Issue discussed in discord here

Reference material that I remembered existed when I started running into this from Leilani's island devlog