Thanks for the help. Switching to DX11 solved the problem for me.
My PC specs:
i7
16GB RAM
GTX 1060 3GB
I’m sick hearing early Access Slogans here and in games.
After 5.0.3 update and ue no more Early Access, I still have beauty red info on half on screen.
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You replied on a message from Dec 2021, currently UE5 is not on Early Access anymore, it is production ready.
It solve the problem only if you don’t use nanite which works only with DX12
You are probably out of VRAM because you only have 3GB of VRAM lol - the gtx 1060 does not meet the minimum specifications for UE5. The new features hog a LOT of VRAM.
Switching to DX11 probably solves it because the new features require DX12, and you are indirectly disabling the engine from utilizing Lumen and Nanite.
If you don’t plan on upgrading hardware you may want to consider sticking with UE4, since your PC will manage a lot better with Baked lighting (I know the 4.26 UI is a lot worse than UE5, feels very outdated, but it is a much more stable platform and better performing especially on older hardware).
Yeah, I’m probably going to upgrade that next paycheck. Looking at the RTX 2060. Saw some min specs that say RTX 2k series required.
I use it on both a 1070 and 2070, and I think it’s acceptable for well-optimized levels on the 1070. It’s not ‘the best’, but it works (it struggles with Lumen on scenes with complex lighting though, or with several lights with dynamic shadows enables). I imagine the 2060 would be about the same. For the price though you might want to wait and grab a 30 series card if you can…the jump from 20 series to 30 series is pretty big and the value is often better. They’ll probably drop even more once the 40 series comes out too.
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World Patitioning helped reduce the in-editor demand for VRAM usage. Try unloading cells or upgrade graphics cards.
For anyone just wanting to turn the warning off on screen, you can run the command TOGGLEALLSCREENMESSAGES in the unreal console to turn off all messages on screen (to turn them on just run the command again)
EDIT: If you want to disable only the memory warning message, you can do so by setting r.DemotedLocalMemoryWarning to 0 in the console variables editor. Console Variables Editor | Unreal Engine 5.0 Documentation
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Check engine light is on? Just put a sticker over it lol
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Thanks a lot, was looking for such an answer all day as I’ve been taking screenshots for work-in-progress shots and that red warning kept appearing even in screenshots.
Hopefully disabling Lumen did the trick for me. I can now have decent 50 fps and no warning on an empty scene. Not extraordinary, but at least I can use UE5 with an 11 years old 1060 
Well had to turn off in settings /Engine/Rendering/Support Hardware Ray Tracing . Worked for me .
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You’re the first one I saw to mention minimized UE. That’s exactly what’s happening. It works just fine while I’m on the editor, but when I switch to another app for a while and then switch back to Unreal I get this Memory Exhaustion problem and it asks to save a bunch of level versions when I close it. Only restarting the PC solves it till next time.
Ryzen 3900x
RTX3070 8GB
64GB RAM
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Precisely, I have not seen topics about this, maybe I should make one honestly.
I open blender or other software, even spotify, then I came back and I have a memory exhaustion problem and some of my textures become low quality.
It all goes away if I exit and reopen the project again.
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I am also getting this message using the release version of 5.1
I have a 3090 with 24GB. Just loaded up a new blank project, and I’m currently only showing 5.3/24.0 GB “Dedicated GPU memory”, 25.7/47.9 GB “Shared GPU memory”, and (obviously) 31.0/71.9 GB “GPU Memory”.
Yet Unreal says I am 4759.070 MB over budget.
Call me confused. I even closed and reopened, tried the suggestions listed in the other thread about setting the ini to unlimted texture streaming. It took a little while the second time, but it still came up without touching anything (I walked away as it was loading up).
To be honest, I haven’t really dug much further than this thread, so if I find anything new out, I’ll post it here.
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Yes much worse on 5.1. It climbs up to 1000mb over budget after about three minutes in the editor. I’m on a 2070.
It used to happen over a few minutes in 5.0 but still be kinda workable. In 5.1 it slows down to like 2 fps
If I go down to medium scalability it is ok but that is just gross
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To anyone wondering, the latest nvidia driver update helped quite a bit. Not gone but back to how it was in 5.0
I had this issue suddenly appear, but after some digging, I discovered I had recently created 3d character portraits for my game using render targets and I was spawning a bunch of them making my gpu run out of memory.
So it was my own fault 
Fixed it by deactivating the 2d render cams when they are not needed.
I had 1 fps in default scene on epic settings in 4k, but managed to improve my fps to 20 by changing antialising method from tempral superresolution to multisample.