For moving your content from Twinmotion to Unreal Engine, please make sure you are using the following plugin Datasmith Twinmotion Content for Unreal Engine in Code Plugins - UE Marketplace and the linked documentation. Any other plugin or documentation is likely outdated and meant for older versions of Twinmotion and Unreal Engine.
As long as you have the plugin enabled, materials should work normally, although there are some issues with some asset types and materials. Please refer to the documentation for further details.
Yeah, I found out that with the latest version (Twinmotion 2023.1.1) I have to use the latest plugins in combination with exporting a DataSmith file from Twinmotion to import that in to UE.