I ran into this problem with UE 5.3 recently for mobile lighting. By then, I had “Enable local lights support on mobile forward” unchecked in Project Settings → Renderer. Turned it on, brought back the rect lights in my game.
Just want to add my two cents and say this feature is working for me in 5.3 and 5.4 on rect lights with grayscale textures plugged in to the Source Texture.