UE 5.6.0: Stationary Light Issues - No Dynamic Shadows & Severe FPS Drop After Baking

Check Limitations and Notes in the documentation for first person rendering.

“Certain advanced first person rendering features require first person pixels to be marked with a bit in the GBuffer.”

“The second consequence is that Allow Static Lighting needs to be disabled in the project settings. By disabling static lighting for the project, some GBuffer bits are freed up to be used by first person rendering.”