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UE4 with source control

I have recently created a UE4 project and created a repository on Bitbucket. I have however ignored certain generated files and folders such as the starter content.

Is it acceptable for the repository to only contain the user-made content and source files? Should my teammates clone the repository, create a new separate project and then copy starter content and other necessary folders across to the repository project?

no, you have to use version control in youre whole team.