I finally managed to get Unreal Engine 5.2 build from source!
How to do it:
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The very first reason and most annoying one is that the paths are too long for the compiler! Place your software in a short location (I.E. "C:")
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click on setup.bat - wait until it’s finished
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GenerateFIles.bat - wait until it’s finished
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I saw in someone’s comment that DotNet 3.1, although deprecated, should be enabled in Visual Studio
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I believe this was actually the important part - download FMOD and add it to “Engine/Plugins/”
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That’s it
You can now build the solution inside Visual Studio by right-clicking the UE5 folder on the left and “build”