For anyone else who runs into this issue here is how I fixed it:
- Open the file BaseEngine.ini located at 
X:\Folder\Epic Games\UE_5.4\Engine\Config. - Search for the section labeled [Zen].
 - Change the value of 
AutoLaunchfromtruetofalse. - Save the file.
 - Navigate to the Engine\Binaries\Win64 directory within your UE5 installation folder.
 - Look for zenserver.exe and run it.
 - After launching, restart your project or the entire UE5 engine.