I am having the same issue. It runs in an endless loop, it seems, and keeps repeating trying to compile the same shader and failing due to over-long filenames that is insists of generating.
I found two tips that seem to tackle the issues and its also embedded in the message:
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r.DumpShaderDebugShortNames = 1 to prevent UE from using long names – this has not worked for me at all.
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Pathnames too long causing build failures - #2 by UE_FlavienP → going to try next. Will report when I know more.
Best, R