It appears that several launchers, and possibly other weapons that have a "secondary explosion" do not have any penetration associated with this secondary effect and therefore do no damage. This appears to be limited to launchers and possibly other weapons from both CE and CE compatible mods that use a primary damage effect, usually a "bullet" for "HEAT" type weapons but also include a secondary "bomb" type damage. I've tested this with the LAW, and the HEAT RPG-7 from CE as well as the Charged Rocket Launcher from Vanilla Expanded (which has a CE patch). When fired against an armored target the weapons will deal their primary "bullet/EMP/etc" damage but no blast damage to nearby targets within the radius. when tested against unarmored targets blast damage is sustained along with the primary damage.