Ok, the way I found to circumvent this problem is to uninstall every last piece of Apple software from the computer (clean uninstall) and reinstalling it back from a downloaded version of iTunes (which you can get from the likes of CNET).
After I did it, Unreal Engine went back to recognise iTunes however another error came in which I have no idea how to solve (it’s related to RenderDocPlugin - I’ll open a separate post for that). It was working before so there is a chance the errors might be related somehow.