This is an issue I noticed while working on a script that slowly applies damage to a vehicle within an area.
setDamage for whatever reason seems to apply an amount of force from directly above the vehicle the damage is being applied to. This causes tanks/car suspension to compress and static weapons and the likes to clip through the ground and bounce.
This issue does not occur with similar commands (setHitpointDamage etc) and only happens with setDamage
While it's not super noticeble when the command is run once, if run multiple times it's very noticeble as seen in this recording: