To check if BEAM elements could form a frictional contact between them or not, I did a quick example.
So the contact gets detected and it solves for this case, since the contact settings were changed to 'Adjust to Touch'. When I turned the force to act in X or Z direction instead of Y, it returned me a Rigid Body motion error which makes sense.
Now, I made the right body (to which the force was applied) to translate along Z axis by a distance of 1 mm, and re-conducted the analysis. Then I did the same by shifting it up by 2 mm.
TRANSLATION (along Z axis) of 1 mm :
TRANSLATION (along Z axis) of 2 mm :
So for a translation of 1 mm, it solved, however for a translation of 2mm, it didn't solve for the same loading conditions. If it were to be solid bodies, then it would had solved for sure because there is still some part of the those faces which are in contact, which are transferring loads. But for the line bodies, it is slightly confusing. I don't know if you have had similar issues with the line bodies, but I would be so glad if I can get some information and knowledge on why does this phenomenon happen for the line bodies as shown in the images I have shared.