PS5 shader compile error when building installed engine from UE 5.6.1

We upgraded from 5.4.4 to 5.6.1 and we can no longer build an installed engine. We trigger it like this.

Source/Engine/Build/BatchFiles/RunUAT.bat BuildGraph -target=“Make Installed Build Win64” -script=“Engine/Build/InstalledEngineBuild.xml” -set:HostPlatformOnly=false -set:WithWin64=true -set:WithMac=false -set:WithMacArm64=false -set:WithAndroid=false -set:WithIOS=false -set:WithTVOS=false -set:WithLinux=false -set:WithLinuxArm64=false -set:WithHoloLens=false -set:WithWinGDK=false -set:WithGDK=false -set:WithXB1=false -set:WithXboxOneGDK=false -set:WithXSX=true -set:WithPS5=true -set:WithDDC=true -set:HostPlatformDDCOnly=false -set:SignExecutables=false -set:EmbedSrcSrvInfo=false -set:WithFullDebugInfo=false -set:AllowParallelExecutor=false -set:GameConfigurations=“DebugGame;Development;Test;Shipping”

It ends up attempting to build windows shaders as PS5 shaders and it fails. This is when building installed DDC for TP_MotionDesignBP.uproject.

LogWindows: Error: appError called: Fatal error: [File:D:\Game\GameEngine\Source\Engine\Source\Runtime\Engine\Private\ShaderCompiler\ShaderCompilerEditor.cpp] [Line: 597]
7 errors encountered compiling global shaders for platform SP_PS5:
Shader debug info dumped to: “D:\Game\GameEngine\Source\Templates\TP_MotionDesignBP\Saved\ShaderDebugInfo\SP_PS5\Global\FColorEncodingCopyRectPS\7”
D:\Game\GameEngine\Source\LocalBuilds\InstalledDDC\Engine\Plugins\Runtime\nDisplay\Shaders\Private\DisplayClusterColorCorrection.ush(8:31): Shader FColorEncodingCopyRectPS, Permutation 7, VF None:
/Plugin/nDisplay/Private/DisplayClusterColorCorrection.ush(8:31): (error, code:20008) - identifier ‘precise’ is not a valid type
D:\Game\GameEngine\Source\LocalBuilds\InstalledDDC\Engine\Plugins\Runtime\nDisplay\Shaders\Private\DisplayClusterColorCorrection.ush(8:31): Shader FColorEncodingCopyRectPS, Permutation 7, VF None:
/Plugin/nDisplay/Private/DisplayClusterColorCorrection.ush(8:31): (error, code:6703) - Invalid type specifier.
D:\Game\GameEngine\Source\LocalBuilds\InstalledDDC\Engine\Plugins\Runtime\nDisplay\Shaders\Private\DisplayClusterColorCorrection.ush(10:14): Shader FColorEncodingCopyRectPS, Permutation 7, VF None:
/Plugin/nDisplay/Private/DisplayClusterColorCorrection.ush(10:14): (error, code:5416) - unexpected undeclared identifier ‘InColor’
D:\Game\GameEngine\Source\LocalBuilds\InstalledDDC\Engine\Plugins\Runtime\nDisplay\Shaders\Private\DisplayClusterColorCorrection.ush(10:33): Shader FColorEncodingCopyRectPS, Permutation 7, VF None:
/Plugin/nDisplay/Private/DisplayClusterColorCorrection.ush(10:33): (error, code:5416) - unexpected undeclared identifier ‘InColor’
D:\Game\GameEngine\Source\LocalBuilds\InstalledDDC\Engine\Plugins\Runtime\nDisplay\Shaders\Private\DisplayClusterColorCorrection.ush(10:43): Shader FColorEncodingCopyRectPS, Permutation 7, VF None:
/Plugin/nDisplay/Private/DisplayClusterColorCorrection.ush(10:43): (error, code:5416) - unexpected undeclared identifier ‘InGamma’
D:\Game\GameEngine\Source\LocalBuilds\InstalledDDC\Engine\Plugins\Runtime\nDisplay\Shaders\Private\ResourceUtils.usf(82:24): Shader FColorEncodingCopyRectPS, Permutation 7, VF None:
/Plugin/nDisplay/Private/ResourceUtils.usf(82:24): (error, code:5479) - incompatible argument list for call to ‘DisplayGammaCorrection’. Found 1 possible candidates:
function was called with params: (float3,float): /Plugin/nDisplay/Private/ResourceUtils.usf:82:24
could be: DisplayGammaCorrection(): /Plugin/nDisplay/Private/DisplayClusterColorCorrection.ush:8:8
D:\Game\GameEngine\Source\LocalBuilds\InstalledDDC\Engine\Plugins\Runtime\nDisplay\Shaders\Private\ResourceUtils.usf(102:24): Shader FColorEncodingCopyRectPS, Permutation 7, VF None:
/Plugin/nDisplay/Private/ResourceUtils.usf(102:24): (error, code:5479) - incompatible argument list for call to ‘DisplayGammaCorrection’. Found 1 possible candidates:
function was called with params: (float3,float): /Plugin/nDisplay/Private/ResourceUtils.usf:102:24
could be: DisplayGammaCorrection(): /Plugin/nDisplay/Private/DisplayClusterColorCorrection.ush:8:8

Is there anyone else who ran into this and solved it?