Why are shadows in unreal engine so dark?

Yeah and they still call screen space blurred shadows as soft-shadows…

All options are right there - balance of ambient and direct light + exposure control/eye adaptation/tone-mapping (they are all similar concepts) as post-process. If you materials have to high values of metallic or low roughness, they will look dark - they are suppose to.

You might have a problem with gamma settings of the monitor too, your first screenshot look relatively fine on my screen, at least I wouldn’t call it dark.

Perhaps other people have ideas…