I found out that in my case it was related to a plugin “AccuRig”. When it is activated it generates this error. I deactivated the Plugin and now ue / Lyra is working.
Change in LyraStarterGame.uproject the following lines:
from True to false.
This resolved my issue, maybe your issue is related to same plugin or other. Check LyraStarterGame.ueproject which plugin are activated /deactivated. I would deactivate all thirdparty plugins.
Hope it solves for you, kind regards,
Ivan