Hi @wouter !
So it seems the problem was with timezone.
I remember that when setting up Win 11 I had problems with this aspect on daugthers computer - Windows didn’t let me manualy change timezone and detected it incorrectly. Didn’t find any solutions at that time so I settled just for correct time.
Now I found a solution how you can change timezone using Command prompt so I went ahead and did it that way.
Booted up UEFN, started a new project and revision control immediately connected to servers.
Will try to work on our first project as soon as daughter gets back from summer camp and hopefully there won’t be any further surprises regarding this area. 
Huge thanks for your help in resolving this problem! 
P.S.
In any case I added newest log files if they somehow help.
logs-july.zip (5.2 KB)