Thanks James!
I was actually trying to create a MetaHuman from mesh (MetaHuman from Mesh Quick Start in Unreal Engine | MetaHuman Documentation | Epic Developer Community) which does require creating a blank MH Identity in editor rather than Quixel.
But I found the solution: I actually didn’t have the right MetaHuman plugin installed, I mistook the similar looking MetaHuman SDK plugin for it. I think this is because I had been playing around with earlier versions of MH.
To get the real plugin the user must add it to engine from here: https://www.fab.com/listings/055a6486-ad17-4590-aa1e-261d47f7f041
Once the user installs the MetaHuman (not MetaHuman SDK) plugin, it becomes possible to add a MetaHuman Identity in the Content Drawer as instructed in the guide.