If you were not understanding anything in the AP physics class the most important thing to worry about is not what colleges might think. It’s why that happened. While many kids instinctively blame the teacher, you need to give it more thought than that. Was it study habits? You didn’t care about the subject? Too much else happening in school and ECs to give it enough time? Etc…
A lot of kids never take AP Physics until college and do fine in engineering. So this by no means rules out engineering in your future. But you need to figure out why it wasn’t happening for you and what needs to change. Keep in mind that the pace of an AP class is much slower than a college class. Your AP class met daily and by the end of the year will cover what a quarter-based college covers in 2 quarters. So that’s about 200 hours of instruction over 40 weeks vs 60 hours over 20.
Nationally 1/2 of all those starting engineering drop out. It is a tough program. If you look at a sample program such as https://www.seasoasa.ucla.edu/curric-14-15/32curmech-14.html you’ll see they have you taking physics your 1st year. So think of this as a peek at your future and a chance to fix anything that isn’t working right for you before it’s for keeps.