I have difficulty integrating My Blender workflow to Unreal

How do I get rid of the stretched texture here?

I tried changing the Blender UV map but it is a mess. If I use a regular checker Texture or anything like that it is just fine and does exactly what I want but for some reason when an image is involved all of a sudden it starts acting weird.

All those streches clearly indicate your uv map is not right. Go to blender, apply a image checker texture, and unwrap the model right.