UE5.7 Crash on Startup: "Unable to use default cache graph" - No Writable Nodes Available

Summary

Hi Epic Team,

I am encountering a fatal crash immediately when launching Unreal Engine 5.7 (or 5.7.1). The crash reporter indicates an issue with the Derived Data Cache.

Error Message:
Fatal error: [File:D:\build++UE5\Sync\Engine\Source\Developer\DerivedDataCache\Private\DerivedDataBackend.cpp] [Line: 288]
Unable to use default cache graph ‘InstalledDerivedDataBackendGraph’ because there are no writable nodes available.

What I have tried so far:

Deleted DerivedDataCache, Intermediate, and Saved folders.

Tried launching with the -DDC-ForceMemoryCache argument.

Checked file permissions and disabled proxy/VPN.

None of these solutions worked. The engine crashes before I can even open a project. Please advise on how to fix this cache graph issue.

What Type of Bug are you experiencing?

Foundation (C++ Tools, Profiling, & Pipeline)

Steps to Reproduce

Install Unreal Engine 5.7 via Epic Games Launcher.

Click “Launch” to open the engine.

The engine initializes and then crashes immediately with the “Unable to use default cache graph” fatal error.

Expected Result

The Unreal Editor should launch successfully without crashing, allowing me to open or create projects normally.

Observed Result

The editor crashes immediately during startup with the fatal error: “Unable to use default cache graph ‘InstalledDerivedDataBackendGraph’ because there are no writable nodes available.”

Affects Versions

5.7

Platform(s)

Windows

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For crash reports, include your callstack

Fatal error: [File:D:\build++UE5\Sync\Engine\Source\Developer\DerivedDataCache\Private\DerivedDataBackend.cpp] [Line: 288]
Unable to use default cache graph ‘InstalledDerivedDataBackendGraph’ because there are no writable nodes available.

Additional Notes

Engine Version: UE 5.7 (or 5.7.1)

OS: Windows 10/11

Network: Using standard internet connection (mention if using VPN/Proxy).

Note: This happens on a fresh install/startup.