You're getting weird normals because your low-poly is smooth shaded and low-poly. You have two options: 1. Add support loops to the edges so you don't get pillowy shading on your low-poly. 2. Give the low-poly hard edges and risk having weird artifacts on your normal map. Unless this is a hero prop that people are going to…
thats not really the case though is it? I mean there seem to be 2 paths Engine is synced with baking app. (good times) bake and be happy. Engine is not Synced with baking app. (time to compensate) Smoothing groups/uv splits