Unreal Engine 5.4.4 Nanite is enabled Issue?

Hey all,
I am working in unreal 5.4.4 and have the current error message with Nanite.
I have nanite disabled in project settings → render tab.
I also have raytracing and lumen disabled as I have no need for those in my current project.

I checked all my models, material and blueprints and didn’t see nanite enabled on any of them.
I did some digging on the unreal forums and they mentioned in project settings → description → d3d12 platform to enable sm5 (sm6 is already enabled in 5.4.4).

I want to understand the how and why of those settings are and what my solution would be if ticking both these boxes doesn’t solve the issue.

Thanks in advance for the help!