As far I know there’s an .ignore file required for each workspace, so from the current .ignore file that path would be out of scope as it is not defined in the client root.
Btw., here are the log entries that I get with my own 5.4.2 project during start:
LogSourceControl: Attempting ‘p4 client -o DESKTOP-ABCDEFG_UNREAL’
LogSourceControl: Attempting ‘p4 fstat -Or D:/Unreal Projects/UE54VR/Config/DefaultEngine.ini’
LogSourceControl: Uncontrolled asset enumeration started…
LogSourceControl: Uncontrolled asset enumeration finished in 1.017239 seconds (Found 7308 uncontrolled assets)