Hello there @d1myan!
Checking through your log, I think what you are encountering doesn’t depend on the engine version. For starters, we have a D3D12 crash at level load, the system being unable to create a resource, due a memory limit or an invalid string:
Fatal error: [File:D:\build++UE5\Sync\Engine\Source\Runtime\D3D12RHI\Private\D3D12Util.cpp] [Line: 1030]
Adapter->CreateCommittedResource(…) failed at D:\build++UE5\Sync\Engine\Source\Runtime\D3D12RHI\Private\D3D12PoolAllocator.cpp:524 with error E_INVALIDARG
Then we have multiple entries of different mesh assets in your scene with surprisingly high memory counts:
Building static mesh Volvo_ES90_2026_BODY (Required Memory Estimate: 820 MB)
Building static mesh CGAXIS_089_22_00 (Required Memory Estimate: 483.484671 MB)
Building static mesh Shape2668 (Required Memory Estimate: 494.649032 MB)
As a general rule, any asset (even a complex one) asking for more than 200mb could be considered a warning, reaching for 400 or 800 pretty much guarantee a crash. Meaning, you were correct in your approach, deleting the datasmith assets. Said elements are most lilkely affected by excessive tri-count, corrupted geo, or invalid Nanite data.
In order to resolve this, the affected meshes need to be reviewed in 3dsmax, you can ran optimizer functions on them to reduce the tri count, check for any non-manifold geo, merge elements, etc. Then, in engine, I would test disabling Nanite those assets only, during re-import.
If the issue persists after these changes, there are a few alternatives to test. Since you have a nVidia GPU, you can clear up your current set of drivers, and change them to Developer drivers, as these are more stable for engine work.
And since your project was updated from 5.6 to 5.7, there could be some old assets interfering, whcih can be solved with a cache clear. Simply navigate to your project’s main directory, and delete folders Intermediate, DerivedDataCache, and Saved. After that, relaunch your project, and allow it to rebuild.