Just FYI to anyone interested in this. I asked on UDN about this and the official word as of 2022-10-01 is this: There is no official word.
Internally there are some folks at Epic who want to do this. They’re trying to make it happen. There are some obstacles they need to overcome. There is no timeline.
In the interim, DO NOT GIVE AWAY THE LYRA SOURCE CODE by putting it in a public Github repository. You can put it in a private repo that only you and your team can access, but DO NOT MAKE THE CODE PUBLIC.
Epic owns the Lyra code. They license it to us via the UE5 license that we all agreed to. You wouldn’t publish the UE5 Engine code would you? (Answer: No). So don’t publish the Lyra code either.
Hopefully Epic will make some progress on this before too much longer.