@pencilstubs - we have two approaches to simulate cylinders in IsaacSim, either as custom geometry (which is CPU-based) or as a convex hull. For grasping, a convex hull will work better. If you just visualize the colliders it should be obvious, or you can check the stage setting here: Where is Custom Geometry flag in Collider - #3 by AlesBorovicka
I can double-check your setup if you share a PVD capture: OmniPVD - PhysX Visual Debugger — Omniverse Extensions latest documentation