Currently experiencing the same issue, some details;
Currently moving a large project between 5.3.2 and 5.5.4.
Process has been:
- Download Source Engine 5.5.4
- Copy and convert project to 5.5.4 to ensure this is possible.
- Generate Precompiled version of 5.5.4
- Move converted project inside Precompiled 5.5.4 and remove EngineAssociation from .uproject
- Attempt to generate Visual Studio Project Files get same result as OP’s screenshoot
Will repost here if I find a solution.