How to create a new project (c++)

Hi, I am new to this engine and am trying to create new project, third person game to be exact. But when I click create I get compile error and suggestion that I should open it in VS. I also get this log:

Running C:/Program Files/Epic Games/UE_5.1/Engine/Build/BatchFiles/Build.bat Development Win64 -Project="C:/Users/tadej/OneDrive/Dokumenti/Unreal Projects/test3/test3.uproject" -TargetType=Editor -Progress -NoEngineChanges -NoHotReloadFromIDE
Running UnrealBuildTool: dotnet "..\..\Engine\Binaries\DotNET\UnrealBuildTool\UnrealBuildTool.dll" Development Win64 -Project="C:/Users/tadej/OneDrive/Dokumenti/Unreal Projects/test3/test3.uproject" -TargetType=Editor -Progress -NoEngineChanges -NoHotReloadFromIDE
Log file: C:\Users\tadej\AppData\Local\UnrealBuildTool\Log.txt
Creating makefile for test3Editor (no existing makefile)
Unable to instantiate module 'SwarmInterface': Could not find NetFxSDK install dir; this will prevent SwarmInterface from installing.  Install a version of .NET Framework SDK at 4.6.0 or higher.
(referenced via Target -> Launch.Build.cs -> SessionServices.Build.cs -> Core.Build.cs -> Virtualization.Build.cs -> SourceControl.Build.cs -> RenderCore.Build.cs -> RHI.Build.cs -> D3D11RHI.Build.cs -> Engine.Build.cs -> UnrealEd.Build.cs)

I have downloaded VS with following tools included: “Desktop development with c++”, “Universal Windows Platform development” and “Game development with c++”.
Thank you for any help!

Open Epic Games Launcher, double click on 5.1.1 Launch.
next follow:

This does not resolve the issue, thanks for response anyways