I can suggest a few solutions. Hopefully, they will be of help.
Option 1
So I saw one post suggesting that you need to just set the SDK API Level to “latest”. Feel free to give that a try first.
That same post linked the video that @paul_eckhardt linked as well and I ended up roughly following the uploader’s setup. It’s a long video but you can look at the video description as they provide the steps there.
I’ll share my Unreal Android SDK settings here as well in case it’s helpful.
Option 2
According to these two links below (looks like it’s the same user for both forums as usernames are similar), setting the Target SDK and SDK API Level to 34 will fix it.
Link 1: Community Tutorial: Unreal Engine 5.4.x for Meta Quest VR - #4 by antinnit?
Link 2: Re: What's going on? Can ANYONE build an Unreal En... - Meta Community Forums - 1236696
When using this option, it packaged successfully for me but when I use the Install.bat file, I got this error…
Failure [INSTALL_FAILED_OLDER_SDK: Requires newer sdk version #34 (current version is #32)
It was similar to an error another person got here.
I even verified and checked I had SDK 34 installed through Android Studio and checked I was on the latest firmware for Quest 3 but no luck. Your mileage may vary though.
Option 3
On that same forum, the OP mentioned switching to Meta’s Fork of Unreal 5.4.3.
Although I imagine you could just use the source version of Unreal’s 5.4.3 as well.
Links to their repos here.
If those GItHub links take you to a 404, double check you met the requirements listed here.