To me it just looks like they haven’t really done anything special or particular to achieve such an effect. They simply just did what any standard game does and applied animations to their character model, anything after that such as clipping or w.e. is entirely up to the engine or settings of physics. Pretty sure its also shown in the character shadows (i checked as well cause i was curious on it and I rly do love how they blurred the hands/guns etc which kinda changes the FP templates you see in games these days)
So in the case of unreal, you would have a character mesh -> player presses [Space Bar] -> Character performs hands in face animation.