I encountered this exact same issue before and even created a thread about it, though it’s now locked for further replies: UE5 Hangs When Building HLOD and Minimap - Shader Compilation Error in Log
I tried several workarounds, including reinstalling GPU drivers and reinstalling build tools, but none of those worked for me. Ultimately, the only solution that worked was building Unreal Engine 5 directly from source. After switching to the source-built version, everything has been running smoothly.