hi @YU7A , @Vilvalas , @Vilvalas ,
This error was originally traced to project being saved on MS OneDrive, which is the default for Windows 11. The symptom was missing the red underline in VC Code/ Verse
check in File Explorer the your project path is NOT like example
C:\Users\Owner\OneDrive\Documents\Unreal Projects
The path must begin
C:\Users\Owner\Documents\Unreal Projects
so that path is stored on the SSD.
There is in later versions of UEFN/Fortnite a message for new projects creation ,
but this does not appear for older projects, especially under Windows 11